The Effect of National Culture, Organizational Complementarity, and Economic Motivation on Joint Venture Dissolution

Abstract

This study examined the effects of partner nationality, organizational dissimilarity, and economic motivation on the dissolution of joint ventures. Event-history analysis was used to test the hypotheses in a sample of 186 ventures. Cultural distance in general did not have an effect on dissolution, but U.S.-Japanese joint ventures lasted longer than U.S.-U.S. joint ventures. Prior relationships between partners appeared to negate some complexities arising from cultural differences. Opportunistic threat and rivalry appeared to be a stronger indication of the dissolution of joint ventures than organizational variables.