TOWARD UNDERSTANDING JOINT VENTURE PERFORMANCE AND SURVIVAL - A BARGAINING AND INFLUENCE APPROACH TO TRANSACTION COST THEORY

The author posits that the joint venture ((JV) form of governance impo ses a greater burden of bargaining and political influence costs than is present in ct hierarchy. The iv's incremental costs derive from sha red sovereignty and incomplete contracting. The magnitude of those cos ts is related to parental differences, factionalism, and task interdep endence in the top management team (TMT), and dynamism in the task env ironment. The costs are argued to undermine the quality of TMT decisio n making, thereby negatively affecting organizational adaptation, perf ormance, and survival.