Structuring International Joint Ventures: How Should Contractual Design Be Aligned with Environmental Conditions?

Management International Review, Vol. 43, pp. 185-211, 2003

27 Pages Posted: 1 Aug 2010

See all articles by Yadong Luo

Yadong Luo

University of Miami - Department of Management

Justin Tan

York University - Schulich School of Business

Date Written: 2003

Abstract

Using international equity joint ventures (IJVs) as the analytical setting, this study examines the configurations between a set of contractual completeness attributes and a set of environmental conditions:

1) Our analysis suggests that contingency coverage of an IJV contract increases as environmental dynamism, complexity, and hostility increase. Issue inclusiveness of an IJV contract increases along with environmental dynamism. Clause specificity of an IJV contract decreases when environmental dynamism and complexity heighten.

2) The above configurations between contractual design and environmental conditions are found to have a favorable influence on IJV performance in a host country.

Suggested Citation

Luo, Yadong and Tan, Justin, Structuring International Joint Ventures: How Should Contractual Design Be Aligned with Environmental Conditions? (2003). Management International Review, Vol. 43, pp. 185-211, 2003, Available at SSRN: https://ssrn.com/abstract=1553140

Yadong Luo (Contact Author)

University of Miami - Department of Management ( email )

United States

Justin Tan

York University - Schulich School of Business ( email )

4700 Keele Street
Toronto, Ontario M3J 1P3
Canada

HOME PAGE: http://www.schulich.yorku.ca/SSB-Extra/Faculty.nsf/faculty/Tan%20Justin

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