Country risk, national cultural differences between partners and survival of international joint ventures in Brazil

Título: Country risk, national cultural differences between partners and survival of international joint ventures in Brazil

Autores: Pierre-Xavier Meschi, Edson Luiz Riccio

Resumo/Sinopse: This article aims to identify the main and interaction effects of two country-level variables, namely national distance and country risk, on the survival of international joint ventures in emerging markets. Research hypotheses predicting the negative impact of national distance and country risk on survival of international joint ventures are formulated in this article. These research hypotheses are examined in a sample of 234 international joint ventures formed in Brazil between 1973 and 2004. These international joint ventures were subjected to an event history analysis over a period of time ranging from 1973 to 2006. The empirical results show that large national cultural differences between local and foreign partners increase the instability of international joint ventures, whereas the survival of these alliances does not seem to be affected either by the economic and political uncertainty of Brazil. Furthermore, the national distance between local and foreign partners has effects on survival that are variable according to the life cycle of international joint ventures.

Data de publicação: Junho 2008

Periódico/Editora: International Business Review / ScienceDirect – ELSEVIER

Palavras-chave: Country risk and national distance; Emerging market and Brazil; Event history analysis; International joint venture; Survival