Determinants of foreign ownership in international R&D joint ventures: Transaction costs and national culture

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Abstract

In this study, we integrate the transaction costs economics and national culture perspectives by examining the determinants of foreign equity ownership in international R&D joint ventures. Specifically, we focus on the impact of different uncertainty dimensions-environmental and behavioral-on the share of equity that multinational enterprises take in their overseas R&D joint ventures. We further investigate the roles that two national culture components-power distance and uncertainty avoidance-play in this process. Using 543 international R&D joint venture announcements by foreign enterprises in China, India, Japan, and the United States during the period of 1985 to 2004, our results provide support for both transaction costs economics and the national culture perspectives.

Original languageEnglish (US)
Pages (from-to)110-130
Number of pages21
JournalJournal of International Management
Volume13
Issue number2
DOIs
StatePublished - Jun 1 2007

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All Science Journal Classification (ASJC) codes

  • Business and International Management
  • Finance
  • Strategy and Management

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