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Company control is the core issue of the International Joint Ventures (IJV). More intense control on IJVs will give rise to higher coordination cost, while less intense control will lead to opportunistic behaviors. We use game theory based on IJV's essential dilemma to analysis and then find out that the key to occupy IJV control is to form control over critical resources.
This paper applies game theory to analyze the dynamics of a joint venture. In particular, this study argues that knowledge complexity and learning capability are critical factors in determining bargaining power of both partners. Change of bargaining power breaks the balance and causes instability of a joint venture (rearrangement of control). In order to improve the stability of a joint venture, both...
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