Abstract

This study examines the mediating effect of partner selection criteria, absorptive capacity and bargaining power for the relationship between Cross-Border Joint Venture (CBJV) motives, CBJV perceived value criteria and CBJV value creation. We argue that CBJV firms with asymmetric motives and perceived value criteria will have task related partner selection criteria, higher absorptive capacity and higher bargaining power which results in greater value creation for CBJV. Based on a sample of 201 Indian CBJV with G7 nations during the period 2000-2010, we find that partner selection criteria, absorptive capacity and bargaining power partially mediates the relationship between CBJV motives, CBJV perceived value criteria and CBJV value creation. We discuss implications and directions for future research.

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