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Effectiveness of Dyadic and Multi-Party Joint Ventures

Esteban García-Canal

University of Oviedo, Spain

Ana Valdés-Llaneza

University of Oviedo, Spain

Africa Ariño

IESE Business School, Spain

Using data from 80 joint-venture (JV) experiences, this article compares the influence on JV effectiveness of two alternative ways of management: relational investment and formal control. Our results show that the adoption of one or another is contingent upon the number of partners: while relational investment significantly influences the effectiveness of dyadic JVs, formal control is pivotal in the case of multi-party JVs.

Key Words: dyadic and multi-party joint ventures • joint-venture effectiveness • formal control • relational investments

Organization Studies, Vol. 24, No. 5, 743-770 (2003)
DOI: 10.1177/0170840603024005004
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