Determinants of stability in international joint ventures: Evidence from a developing country context

Though the number of international joint ventures (IJVs) from developing countries has grown considerably, little has been reported on their operations and performance. The extant literature is based largely on IJVs from developed countries. To help fill this knowledge gap, this paper examines the determinants of stability from a study of 59 IJVs from developing and developed countries operating in a developing country. A multivariate model investigates the impact of a set of firm, managerial and culture related factors on the stability of IJVs. Logistic regression analysis reveals that cooperation and psychic distance between partners have significant impact on the stability of an IJV. There were no significant differences between instability rates for IJVs from developing and developed countries, but their determinants varied. The paper discusses the implications and limitations of the study, and identifies areas for further research. © 2000 by John Wiley & Sons (Asia) Ltd.