We revisit the relationship between two theoretical perspectives on joint ventures - the asymmetric information view and the indigestibility view. The former emphasizes the ex ante valuation challenges firms confront in combining resources, while the latter attends to ex post transaction costs arising from the extraction and integration of indivisible resources. We argue that these two views are complementary, rather than competing, in explaining the usefulness of joint ventures. We also suggest that the perspectives are overlapping inasmuch as resource indivisibility contributes to asymmetric information.
|Original language||English (US)|
|Number of pages||3|
|Journal||Strategic Management Journal|
|State||Published - Jan 1 2000|
All Science Journal Classification (ASJC) codes
- Business and International Management
- Strategy and Management