The hadronic decays B --> J/psiK (K*) are interesting because experimentall
y they are the only color-suppressed modes which have been measured, and th
eoretically they are calculable by QCD factorization even when the emitted
meson J/psi is heavy. We analyze the decay B --> J/psiK within the framewor
k of QCD factorization. We show explicitly the scale and gamma (5)-scheme i
ndependence of decay amplitudes and infrared safety of nonfactorizable corr
ections at twist-2 order. Leading-twist contributions from the light-cone d
istribution amplitudes (LCDAs) of the mesons are too small to accommodate t
he data; the nonfactorizable corrections to naive factorization are small.
We study the twist-3 effects due to the kaon and find that the coefficient
a(2)(J/psiK) is largely enhanced by the nonfactorizable spectator interacti
ons arising from the twist-3 kaon LCDA phi (K)(sigma), which an formally po
wer suppressed but chirally, logarithmically, and kinematically enhanced. T
herefore, factorization breaks down at twist-3 order. The higher-twist effe
cts of J/psi are briefly discussed. Our result also resolves the long-stand
ing sign ambiguity of a(2)(J/psiK), which turns out to be positive for its
real part.