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A TRANSACTION COSTS THEORY OF EQUITY JOINT VENTURES.
- Source :
- Strategic Management Journal (John Wiley & Sons, Inc.) - 1980 to 2009; Jul-Aug88, Vol. 9 Issue 4, p361-374, 14p
- Publication Year :
- 1988
-
Abstract
- This paper presents a transaction costs theory of equity joint ventures. It distinguishes between 'scale' and 'link' JVs. Scale JVs arise when parents seek to internalize a failing market, but indivisibilities due to scale or scope economies make full ownership of the relevant assets inefficient. Link JVs result from the simultaneous failing of the markets for the services of two or more assets whenever these assets are firm-specific public goods, and acquisition of the firm holding them would entail significant management costs. [ABSTRACT FROM AUTHOR]
Details
- Language :
- English
- ISSN :
- 01432095
- Volume :
- 9
- Issue :
- 4
- Database :
- Complementary Index
- Journal :
- Strategic Management Journal (John Wiley & Sons, Inc.) - 1980 to 2009
- Publication Type :
- Academic Journal
- Accession number :
- 12496728
- Full Text :
- https://doi.org/10.1002/smj.4250090406