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Dialectical tensions and path dependence in international joint venture evolution and termination

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Abstract

This paper identifies how dialectical tensions influence the conflicts in and unplanned terminations of international joint venture (IJV) relationships. The findings from case studies of two Finnish-Chinese JVs show how initial tensions and institutional imprints set the IJV processes in motion; how critical junctures influence perception of the IJV relationship and its evolution; and how a lack of efficient communication, interlinks between dialectical tensions, and insufficient movement of trust between cultural, organizational, and individual levels in the relationship lock in action patterns of confrontation which lead to the termination of the IJV. In essence, this study contributes to international business research by explaining the path-dependent nature of dialectical tensions in the evolution and survival of cross-cultural JVs.

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Authors and Affiliations

  1. Department of Management, Turku School of Economics, University of Turku, Turku, 20014, Finland

    Kalle Pajunen

  2. Nokia Corporation, Espoo, Finland

    Liang Fang

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  1. Kalle Pajunen
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  2. Liang Fang
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Correspondence to Kalle Pajunen.

Additional information

The constructive comments of Senior Editor Klaus E. Meyer and anonymous reviewers greatly helped to improve this paper. The support of Timo Lasola and members of GloStra research group are also acknowledged.

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Pajunen, K., Fang, L. Dialectical tensions and path dependence in international joint venture evolution and termination. Asia Pac J Manag 30, 577–600 (2013). https://doi.org/10.1007/s10490-011-9267-3

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