International joint venture partner selection: The role of the host-country legal environment

Abstract

This study attempts to enhance our understanding of how a host country's legal environment influences international joint venture (IJV) partner selection criteria. Empirical results based on survey data collected on 169 IJVs revealed that host-country rule of law perceptions negatively influence appropriation and coordination cost concerns, which positively influence partner-related criteria. Furthermore, these concerns mediate the relationship between perceptions of host-country rule of law and partner-related criteria. Journal of International Business Studies (2009) 40, 779–801. doi:10.1057/jibs.2008.110

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