Performance, Longevity and Evolution of Joint Venture: Investigation in the Lifecycle of the Venture Through the Case of an International Joint Venture in India

Ajay Arora*, Andrew Inkpen, Vibhas Amawate, Debasisha Mishra

*Corresponding author for this work

Research output: Contribution to journalJournal articleResearchpeer-review

Abstract

Joint ventures (JVs) and cooperative business alliances have been around for over a century, initially emerging from the need for shared risk and capital. Research on JVs has evolved from focusing on motivations for formation to examining their performance and termination phases. However, the dissolution and post-termination stages of international joint ventures remain relatively underexplored despite the rising trend of alliance terminations. This study addresses these gaps by analysing the evolution of JVs, including restructuring and dissolution, through a longitudinal case study of a successful business enterprise spanning four decades that has undergone the entire cycle. It finds that changes in partner composition and equity, influenced by external factors, are integral to a JV’s evolution. Additionally, trust and learning play key roles in control decisions, and terminations should be viewed as adaptations to market shifts rather than failures. The main drivers of termination often arise from changes during the JV process rather than initial formation conditions. Besides adding to the field of management education and research, the study is intended to provide practical insights for JV management as many of the JVs in developing nations, particularly South Asian countries, reach maturity.
Original languageEnglish
JournalSouth Asian Journal of Business and Management Cases
Volume13
Issue number3
Pages (from-to)297-320
Number of pages24
ISSN2277-9779
DOIs
Publication statusPublished - Dec 2024

Bibliographical note

Published online: 20 November 2024.

Keywords

  • International joint venture
  • Evolution
  • Dissolution
  • Termination
  • Life cycle

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