A new way to look at an old problem: International joint venture partner selection via constrained systematic search

Welcher, Tommie

doi:10.1016/j.bushor.2018.08.011

Cited by 2 publications

(2 citation statements)

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“…Moreover, the network position of potential partners has been subject to a few recent studies (Shi et al, 2014). Recent studies have also argued that to enhance the likelihood of IJV survival and success, a primary need in the evaluation of a partner is reliable information about the potential partner's resources (Welcher, 2019). However, information about a potential partner's resources may not be publicly available thus implying the importance to collect information privately or through third parties.…”

Section: International Partner Selectionmentioning

confidence: 99%

“…Furthermore, it is often assumed that family firms either seek to minimize risk by engaging in a low-involvement export mode or try to maximize control via FDI (Pukall and Calabr o, 2014). The international joint venture (IJV), an equity-based partnership between a foreign entrant and a local entity requires collaboration on every aspect of the internationalization endeavor-the partners share investments, profit/losses, risk as well as decision-making authority, according to their shares in the joint venture (Geringer, 1991;Welcher, 2019). When executed properly, an IJV creates complementarity and provides great benefits for the entering firm such as local market knowledge, easier market access, network relationships and others, especially in uncertain and challenging markets (Bruneel and De Cock, 2016).…”

Section: Introductionmentioning

confidence: 99%

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Joint (Ad)ventures—Family firms' international entry mode choices for emerging markets

Loehde

Calabrò

Torchia

et al. 2020

IJEBR

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PurposeThe aim of this study is to advance knowledge on family firms' entry mode choices by examining the linkage between target market context, especially in the emerging economies of China and India, and the dominant family firm logic of keeping ownership and control in the family.Design/methodology/approachWe use an exploratory multiple case study analysis approach based on nine German family firms' internationalization endeavors. We use both primary and secondary data.FindingsTraditionally, extant research concludes that family principals prefer foreign direct investments (FDIs) in order to exert maximum control when entering international markets. In contrast, our study finds a clear preference for international joint ventures (IJVs) as an initial entry mode of choice into unfamiliar markets. Our findings propose this decision to be rooted in cultural unfamiliarity and the complexity of the target markets' legal environment. The effect of these two factors is amplified by prior IJVs experiences.Originality/valueThis article offers several original insights. First, we identify the triggers of the paradoxical IJVs’ entry mode choice among family firms and thus explain the motivation for breaking with the dominant family firm logic of maximizing control. Second, we account for factors in China's and India's particular emerging market environments. In the light of family control, the unfamiliarity with these markets triggers the decision to compensate for the high level of uncertainty by engaging in an IJV partnership. Third, our study shows that family firms are indeed willing to share control if it serves the long-term survival of the firm.

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Section: International Partner Selectionmentioning

confidence: 99%