Abstract
International cooperative ventures are becoming a popular variety of foreign direct investment. As with most direct investment models, cooperative venture formation is typically explained in terms of the market imperfections concepts of industrial organization economics models or the transaction cost economics approach of internalization models. However, such models do not provide a sufficient explanation of the original decision by multinational enterprise (MNE) managers to establish an international cooperative venture. A model of international cooperative venture formation is developed that is centered on the decision making process of MNE executives. Central issues for managerial decisions are developed from the organizational studies literature. A framework delineating the sequence and criteria used in the decision to form international cooperative ventures is developed from these defined issues and from existing models. Propositions pertaining to the venture decision process are outlined.
Document Type
Article
Publication Date
1994
Publisher Statement
Copyright Journal of International Business Studies First Quarter 1994
Recommended Citation
Tallman, Stephen B. and Oded Shenkar. , "A Managerial Decision Model of International Cooperative Venture Formation," Journal of International Business Studies 25, no. 1 (1994): 91.
Included in
Business Administration, Management, and Operations Commons, International Business Commons
