Inter-Partner Credible Threat and The Survival of U.S.-China Joint Ventures

Abstract

lnternational joint ventures (UVs) are perceived as essential strategic weapons
by which firms can transfer the complex complementary competencies needed
for competitive advantage within firms' core markets and technologies. This
study attempts to explore the relationship of inter-partner credible threat and
the survival of UVs in China. The study found that the existence of inter-partner
credible threat, and high product relatedness between foreign parent and IJV,
favorably influence the UV's long-term survival.