TY - JOUR
T1 - Generic differences between equity international joint ventures (EIJVs), international acquisitions (IAs) and international greenfield investments (IGIs)
T2 - Implications for parent companies
AU - Newburry, William
AU - Zeira, Yoram
PY - 1997
Y1 - 1997
N2 - This article develops a model which examines the impact of ten generic differences between equity international joint ventures (EIJVs), international acquisitions (IAs) and international greenfield investments (IGIs) in the pre- and post-incorporation phases of these entities. These differences address the topics of age, equity ownership, financial risk, goal conflict, negotiation time frame, number of owners, ownership type, secrecy, speed of results and trust. It is proposed that some of these differences will have a greater affect on EIJVs, some on IAs and some on IGIs. Additionally, some differences will be more significant in the pre-incorporation phase of a business venture, while others will have a greater impact during the post-incorporation phase. Based upon the generic differences, each of the business venture forms has inherent advantages and disadvantages over the other forms. In general, it is suggested that corporations will increase their chances to be more successful by understanding the generic differences between EIJVs, IAs and IGIs and by coping effectively with these differences. The article concludes with some more specific recommendations for improved EIJV, IA and IGI performance in both the pre- and post-incorporation stages.
AB - This article develops a model which examines the impact of ten generic differences between equity international joint ventures (EIJVs), international acquisitions (IAs) and international greenfield investments (IGIs) in the pre- and post-incorporation phases of these entities. These differences address the topics of age, equity ownership, financial risk, goal conflict, negotiation time frame, number of owners, ownership type, secrecy, speed of results and trust. It is proposed that some of these differences will have a greater affect on EIJVs, some on IAs and some on IGIs. Additionally, some differences will be more significant in the pre-incorporation phase of a business venture, while others will have a greater impact during the post-incorporation phase. Based upon the generic differences, each of the business venture forms has inherent advantages and disadvantages over the other forms. In general, it is suggested that corporations will increase their chances to be more successful by understanding the generic differences between EIJVs, IAs and IGIs and by coping effectively with these differences. The article concludes with some more specific recommendations for improved EIJV, IA and IGI performance in both the pre- and post-incorporation stages.
UR - http://www.scopus.com/inward/record.url?scp=0031160943&partnerID=8YFLogxK
U2 - 10.1016/S1090-9516(97)90001-8
DO - 10.1016/S1090-9516(97)90001-8
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AN - SCOPUS:0031160943
SN - 1090-9516
VL - 32
SP - 87
EP - 102
JO - Journal of World Business
JF - Journal of World Business
IS - 2
ER -