Abstract
Although it is a dominant premise that international joint ventures rep
resent an inherently unstable and fragile form of organization, previous
literature has failed to explain why many international joint ventures
have an extended longevity and stability. In the last chapter we exam
ined instability at a rather broad level. In this chapter, we focus on a
specific dimension of instability-stability in the venture’s management
control structure. We draw upon the organization theory literature to
develop two contrasting perspectives: structural instability and struc
tural inertia, to trace both the destabilizing and the stabilizing forces in
joint venture development. We argue that the structural stability of in
ternational joint ventures depends on the balance and interactions be
tween the two sets of forces. A complete understanding of joint venture
dynamics and evolution requires consideration of both forces.