Using data from 80 joint-venture (JV) experiences, this article compares the influence on JV effectiveness of two alternative ways of management: relational investment and formal control. Our results show that the adoption of one or another is contingent upon the number of partners: while relational investment significantly influences the effectiveness of dyadic JVs, formal control is pivotal in the case of multi-party JVs.

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■ In this paper, we draw attention to the interaction between the number of partners and the direct competition between these when explaining the longevity of stakes in joint ventures (JVs).■ We argue that increases in the number of partners have a positive effect on the longevity of stakes in JVs only when all of these are competitors, especially if the JV includes marketing activities. In contrast, if not all of the partners are competitors, the effect of the number of partners will be the opposite. Our hypotheses are empirically tested via several estimates of proportional hazard regressions, using a sample of JVs carried out by Spanish firms. Key Results■ Our results allow us to shed light on the influence of the number of partners on the longevity of stakes in JVs. Specifically, the contradictory results obtained in prior research may be explained by the moderating role that competition among the partners plays.

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