Pope, J: Breaking Up is Hard To Do

Richard Caves (1998) states that dead business units tell no tales (p. 8), and by extension one could argue that dead business relationships also tell no tales. However, it is the purpose of this book to tell the tales of dead business relationships in hope that other businesses can learn from their mistakes. Business relationships are a vital part of business. With the globalization of the economy businesses will have some form of international contact. For businesses with limited resources or no experience often the most efficient means to expand their reach overseas is to enter into a business relationship. This study examined the variables most connected with the propensity of business relationships to dissolve. The results suggest that variables such as size of the parent firms, political stability, market sophistication, number of partners, number of CEOs in the joint venture and average years of experience in the host country all seem to have the greatest impact on joint venture propensity to dissolve. The study also offers several suggestions for business looking to establish international joint ventures.