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

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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.

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Notes

  1. See Baron and Kenny (1986: 1177) for a detailed discussion of the criteria required for perfect mediation.

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Acknowledgements

York University and Memorial University in Canada provided financial support for the study. We are grateful to the participating executives who gave so generously of their time, and the Asia Pacific Foundation of Canada and the Canada China Business Council for their assistance with helping identify the participants in this study. We also thank Yesim Ozalp for her excellent assistance, and the JIBS editor Professor Lee Radebaugh and the anonymous reviewers for their invaluable insights.

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Authors and Affiliations

  1. Queen's School of Business, Queen's University, Kingston, Ontario, Canada

    Jean-Paul Roy

  2. Schulich School of Business, York University, Toronto, Ontario, Canada

    Christine Oliver

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  1. Jean-Paul Roy
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Correspondence to Jean-Paul Roy.

Additional information

Accepted by Lee Radebaugh, Departmental Editor, 16 April 2008. This paper has been with the authors for two revisions.

Appendices

Appendix A

See Table A1.

Table a1 Partner selection criteria categorizations across past studies
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Appendix B

See Table B1.

Table b1 Breakdown of the host countries represented in the sample
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Roy, JP., Oliver, C. International joint venture partner selection: The role of the host-country legal environment. J Int Bus Stud 40, 779–801 (2009). https://doi.org/10.1057/jibs.2008.110

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