Media Coverage and International Joint Venture Dissolution: An External-Internal Legitimacy Perspective
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AbstractThe antecedents of international joint ventures (IJVs) dissolution have been well investigated, however the literature remains silent to elements outside of an IJV that influence dissolution rates. We deepen examinations of external elements by examining how external legitimacy fluctuations influenced by media coverage affect IJV dissolution. We also consider issues related to internal legitimacy and IJV dissolution, by considering how state capital participation and Hong Kong, Macau, & Taiwan (HMT) capital participation in the parent firm moderates the baseline relationship of media coverage on IJV dissolution. We undertake event history analysis on 803 IJVs established in China from the year 2000 until the end of 2017. The empirical results lend support to our hypotheses rooted in this external-internal legitimacy perspective. Specifically, we show that external legitimacy reflected by increased attention and positive evaluation by media coverage reduces IJV dissolution rates, while internal legitimacy as generated by state and HMT capital inputs strengthens this negative relationship.
All Author(s) ListWang P., Liu B., Delios A.
Name of ConferenceAnnual Meeting of Academy of International Business
Start Date of Conference24/06/2019
End Date of Conference27/06/2019
Place of ConferenceCopenhagen
Country/Region of ConferenceDenmark
LanguagesEnglish-United States
Keywordslegitimacy, media coverage, international joint ventures, emerging economies, survival analysis

Last updated on 2019-27-09 at 16:19