Cultural Compatibility and Joint Venture Instability: A Theoretical Analysis

Operational success of a venture firm essentially depends on the cultural compatibility of the partners. This paper draws attention to the country specific cultural characteristics and partner asymmetry as being the fundamental cause of joint venture instability and break down. Given that one partner has asymmetric information about the type of the other partner, a separating equilibrium is more likely to be the outcome if high state nature is the realization.

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Year of publication:	2005
Authors:	Kabiraj, Tarun ; Lee, Ching Chyi ; Marjit, Sugata
Published in:	Indian Economic Review. - Department of Economics. - Vol. 40.2005, December, 2, p. 209-220
Publisher:	Department of Economics
Subject:	Cultural compatibility \| partner asymmetry \| synergy and learning \| joint venture instability

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Type of publication:	Article
Classification:	F23 - Multinational Firms; International Business ; L13 - Oligopoly and Other Imperfect Markets
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005252165