• Flexibility in international joint ventures (JVS) is important and a shared but split control style is recommended. • Chinese partners used to have learning as their main objective in an IJV but this has been replaced by profit, growth and market share. • The most significant shifts in control between partners involve human resource management and research and development. • When foreign part...

On the Stability of Research Joint Ventures: Implications for Collusion * by Jo Seldeslachts, Tomaso Duso and Enrico Pennings Though there is a body of theoretical literature on research joint venture (RJV) participation facilitating collusion, empirical tests are rare. Even more so, there are few empirical tests on the general theme of collusion. This note tries to fill this gap by assuming a ...

This paper investigates whether joint ventures and strategic alliances create value for bondholders by examining the bond market’s reaction to announcements of these two types of cooperative business activities. Based on 2964 announcements from 1985 to 2011, we find that joint ventures and strategic alliances create significant value for bondholders. The average two-month abnormal bond return i...

In a model where two competing downstream firms establish an input joint venture (JV), we analyze how different royalty rules for covering fixed costs affect channel profits. Under running royalties (regardless of whether based on predicted or actual output), the downstream firms’ perceived marginal costs are above the true marginal costs since fixed costs are incorporated. We find that tougher...