Further Sophisticating the Relationship Between Prior JV Experience and Subsequent JV Formation: The Changing Effect of JV Experience with the Existence of Most Recent JV Failure
AbstractIn this study, I further sophisticate the relationship between JV experience and subsequent JV formation by demonstrating that past experience is not always positive in the future activities. While previous studies emphasize that JV experience generally seems to be conducive to firms’ JV activities such that the greater a firm’s JV experience, the more likely it will form a new JV in the future than inexperienced firm, this study provides the boundary condition by showing that JV experience can partially deter firms’ subsequent JV formation with the existence of prior JV failure. In this regard, this study not only enhance our understanding of the complex nature of firms’ JV activities but also provides practical implication that JV experience is not a panacea but can sometimes hamper JV formation especially when focal firm needs to innovate its current way of conducting a JV in response to recent JV failure.
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