Joint venture stability and cooperation: Direct, indirect and contingent effects of resource complementarity and trust

Despite the increased use of JVs and other forms of alliances, research shows that most collaborative arrangements end in failure due to relationship and resource sharing problems. We note that extant research and practice in this area has tended to emphasize structural and partner selection issues, often at the expense of the relationship and resource development processes which promote ongoing stability and cooperation. This paper presents a view of JV formation and success grounded in the Resource-Advantage (R-A) theory of competition. Our results illustrated the distinct effects of resource complementarity and trust upon JV stability and cooperation. Further, we found that trust was most influential in newer JVs, while the presence of resource complementarity was more critical in older ventures. For firms with greater (less) JV experience, resource complementarity (trust) between the partners was more critical for attaining JV outcomes.