Interdependency in joint ventures: The relationship between dependence asymmetry and performance

Abstract

This paper reports the results of a survey on joint venture collaborations. It focuses on the relations between the level and intensity of conflict, trust and norms of exchange, and ultimately the performance of a joint venture, in case of dependency asymmetry between the partners. In management literature, the relative dependency position of the partners is often indicated as an important antecedent of conflict. In a survey of 78 Dutch companies in joint ventures, we investigated these relationships in depth. Contrary to expectations, we did not find a relationship between the relative dependency of the partners, conflict and performance. The potential threat of conflict seems to be mediated by the norms of exchange shared by the partners. We therefore tentatively conclude that the best way to manage the dependency position in a JV might be to invest time and effort in discussing the norms of exchange up-front, which will help the partners develop a trusting relationship.