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

Abstract

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