International Joint Ventures (IJVs) combine the resources of local and foreign firms to create independent business entities that are able to avoid the risks of cross-border transactions and to gain access to new markets. Despite these advantages, the failure rate of IJVs is very high. This book takes a theoretical approach to the lifecycles of IJVs. Game theory is used by the author to foresee potential problems that may be caused due to conflicting and co-operating elements in the formation, management and termination processes of IJVs. Using rigorous theoretical tools including bargaining, contract/incentive theory and repeated games, the author suggests solutions to the problems predicted.

International Joint Ventures (IJVs) combine the resources of local and foreign firms to create independent business entities, however, their failure rate is high. This analysis of the IJV life cycle considers the problems of multi-person decision-making. A typology of strategic and functional configurations, and solution concepts, are developed.