The Stability of Joint Ventures: Reciprocity and Competitive Rivalry

The focus of the following empirical analysis is the influence of reciprocity and long-term relationships on the stability of joint ventures. These cooperative incentives are offset by industry structural conditions, which may promote competitive rivalry among the partners. To separate these effects on joint venture survival, the hypothesized relationships are proxied by variables drawn from industry and questionnaire data, and estimated under a hazard model specification. A theoretical implication of the findings is to suggest a shift of attention from the transaction to the economic relationship as the unit of analysis.