A Proposed Analytical Framework to Study the Determinants of Cooperation in International Joint Ventures

Cooperation is a crucial factor for the success of an International Joint Venture (IJV). This paper proposes a framework for analysing the determinants of cooperation in an IJV. The analytical framework centres on research questions as follows:a) What factors promote effective cooperation between partner companies and functions in an IJV when an IJV and its functions are engaged in New Product Development (NPD) projects?b) How does such cooperation at two different levels emerge over time in an IJV?c) What is the impact of inter-company cooperation on inter-functional cooperation and vice versa?Two different levels of analysis was employed in order to shed light on these research questions: the corporate level between companies and the inter-functional level within an IJV. The definition of a specific level of cooperation is developed in this paper in order to stress the importance of informal rules. The term ‘cooperation’ refers to ‘voluntary interactions between partner companies and between functions that exceed what is expected on the basis of formal rules in a way that enhances the performance of an IJV’. Cooperation is an outcome of the informal rules that occur in an IJV through interaction between partners and between functions. This paper also presents propositions of research in order to investigate the emergence of cooperation at two different levels in an IJV setting: the inter-company level between partner companies and the inter-functional level between functions that are involved in NPD activities. As determinants of cooperation, five elements have been identified for each of the two levels of analysis in the light of a literature review.