New venture firms, international expansion, and the liabilities of joint venture relationships

Abstract

New venture firms often rely on joint ventures (JVs) as a means to expand internationally. This study adopted a “relational view” of competitive advantage and focused on the management and organization of an international joint venture (IJV) from its initiation until dissolution. The findings of this longitudinal case study clarify some of the reasons why, from the perspective of a new venture, these relationships may become unstable. Theoretical propositions are presented relative to the liabilities that these firms encounter when engaging in IJV relationships.