| RESOURCE-AT-A-DISTANCE AND INTERNATIONAL JOINT VENTURE TAKEOVER: THE MODERATING ROLE OF BUSINESS ASSOCIATIONS |
Received:October 10, 2017 Revised:October 10, 2017 |
Key Words: international joint venture takeover, partner dependence, tangible assets intensity, state ownership, export intensity, business association |
| Author Name | Affiliation | | Jun Xia | University of Texas at Dallas | | Jing Li* | Simon Fraser University | | Zhouyu Lin | Jinan University |
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Abstract: |
| This study examines the takeover of international joint ventures (IJV) by foreign and local partners respectively by introducing the concept of resource-at-a-distance, defined as the situation in which partner A can access a resource possessed by partner B only through partner B. Otherwise, the resource becomes inaccessible to A. We argue that established IJVs may serve as a bridge to access a partner’s resource-at-a-distance. The dependent partner is less likely to take over the IJV with a partner who provides resource-at-a-distance. We further introduce the presence of regional business associations as a contingency because they potentially provide alternative sources of resources for the dependent partners, reducing the effect of partner dependence. Using a sample of IJVs established in China, we find that tangible assets intensity, which increases resource accessibility, increases the likelihood of IJV takeovers by both foreign and local partners. In contrast, state ownership reduces the likelihood of IJV takeovers by foreign partners, but the effect is reduced by the presence of nearby foreign investor associations. Moreover, export intensity reduces the likelihood of IJV takeovers by local partners. However, the moderating effect of nearby international trade associations on this relationship is insignificant. |
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