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International joint venture partner selection: The role of the host-country legal environment

Research paper by Jean-Paul Roy, Christine Oliver

Indexed on: 05 Mar '09Published on: 05 Mar '09Published in: Journal of International Business Studies



Abstract

This study attempts to enhance our understanding of how a host country's legal environment influences international joint venture (IJV) partner selection criteria. Empirical results based on survey data collected on 169 IJVs revealed that host-country rule of law perceptions negatively influence appropriation and coordination cost concerns, which positively influence partner-related criteria. Furthermore, these concerns mediate the relationship between perceptions of host-country rule of law and partner-related criteria.