Operational success of a venture firm essentially depends on the cultural compatibility of the partners. This paper draws attention to the country specific cultural characteristics and partner asymmetry as being the fundamental cause of joint venture instability and break down. Given that one...

In a set-up of two local firms and one foreign firm, we construct a model to capture the dynamics of local industrial structure induced by formation and breakdown of cross-border joint ventures (JVs). There is a synergic gain to the JV, and the partners learn from each other. Firms play a...