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Full-Text Articles in Business
Trust Between International Joint Venture Partners: Effects Of Home Countries, Gokhan Ertug, Ilya Cuypers, Niels G. Noorderhaven, Ben M. Bensaou
Trust Between International Joint Venture Partners: Effects Of Home Countries, Gokhan Ertug, Ilya Cuypers, Niels G. Noorderhaven, Ben M. Bensaou
Research Collection Lee Kong Chian School Of Business
Trust is an important factor in interorganizational relations. Interorganizational trust in cross-border relationships is likely to be influenced by the home countries of both partners. Using data on 165 international joint ventures (IJVs), we show that the perceived trustworthiness of an IJV partner is influenced by the general propensity to trust in the trustor's home country. Moreover, the trustworthiness perceived by a focal parent firm is also affected by the home country of the other IJV partner. This second effect is mitigated by experience between the partners.
What Makes And What Does Not Make A Real Option? A Study Of International Joint Ventures, Ilya Cuypers, Xavier Martin
What Makes And What Does Not Make A Real Option? A Study Of International Joint Ventures, Ilya Cuypers, Xavier Martin
Research Collection Lee Kong Chian School Of Business
This paper examines the boundaries of real options logic, with an application to joint ventures (JVs). We distinguish between forms of uncertainty that are resolved endogenously and those that are resolved exogenously, and theorize that only exogenous uncertainty will have the impact predicted by real options theory on a foreign investor's choice of how large an equity share to take in a JV. We theorize that macroeconomic and institutional variables generate exogenous uncertainty whereas, by contrast, cultural distance and choices pertaining to corporate scope and product or process development activities involve endogenous sources of uncertainty that investors can both assess …