Combinations of partners' joint venture formation motives

Purpose: Prior research on joint venture (JV) formation often examines a single focal firm and assumes it has a single motive for collaboration. This study seeks to investigate how formation motives of partner firms are symmetrically coupled. It considers motives in the context of different European Economic Interest Groupings (EEIGs) characteristics and partner firm characteristics. Design/methodology/approach: Self-administered surveys were employed and a total sample of 104 partners cooperating in 47 different JVs (EEIGs) was used for data analysis. Findings: The paper observes the coupling of different formation motives and finds that different rationales to establish international JVs are held simultaneously by partners. Furthermore, it finds that the number of partners increase when partners hold motives primarily to develop knowledge. Research limitations/implications: Current theorising might focus too narrowly on particular motives or at best on combinations of motives within a specific theoretical approach. Such a single approach might be rather simplistic due to the multiple rationales to enact EEIGs by partners. Future studies that accommodate multiple perspectives simultaneously in a single paper would significantly advance the field and hold more explanatory power. Practical implications: The paper finds that in general partner motives are symmetric, but some motives are more natural candidates for partners to couple together. Furthermore, smaller firms can also benefit by forming more complex collaborations and hold multiple motives simultaneously. Originality/value: The paper reinvigorates theoretical development by showing the amalgamation of different motives and theories for JV establishment. It also provides new guidelines to practitioners and scholars alike by examining various combinations of collaborative motives and how they are coupled across partners in alliance dyads.

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