Date of Award
Doctor of Philosophy (PhD)
Dr. Michael Minor
Richard Caves (1998) states that “dead business units tell no tales” (p. 8), and by extension one could argue that dead business relationships also tell no tales. However, it is the purpose of this dissertation to tell the tales of multiple dead business relationships in hope that other businesses can learn from their mistakes. Business relationships have been and continue to be a vital part of business. With the globalization of the economy, most, if not all, businesses will have some form of international contact. For businesses with limited resources or no experience often the most efficient means to expand their reach overseas is to enter into a business relationship, whether it be a coalition, strategic alliance, joint venture or merger.
This study examined the variables most connected with the propensity of business relationships to dissolve. The research examined not only parent characteristics, but also relationship and environmental characteristics, of the firms involved in the relationships. Multiple regression determined which of the variables had an influence on the propensity to dissolve. The variables were then tested for predictability using multiple discriminate analysis.
The data for this study were obtained from secondary sources such as company websites and Hoovers.com. The dissertation contains an introduction, literature review, methodology, results analysis and conclusions.
The results suggest that variables such as size of the parent firms, political stability, market sophistication, number of partners, number of CEOs in the joint venture, and average years of experience in the host country all seem to have the greatest impact on joint venture propensity to dissolve. These variables are all ones that parent firms can control or adjust to and need to be considered by the firms when establishing an international JV. The study also offers several suggestions for business looking to establish international joint ventures.
University of Texas-Pan American