Thats a unique idea.You should consider the following idea to enhance your idea so that it would impact uniquely: I examine why there are differences in alth gains beten firms when they announce a joint venture (JV). Building on transaction cost economics and the resource-based view, I argue that, because JVs often involve incomplete contracts, differences in alth gains arise due to resource appropriation and private benefits. As a result, two factors become important in understanding whether a firm earns higher/lor alth gains than its partner: (1) its potential for earning private benefits and (2) its ability to extract private benefits. As a test of the impact of the first factor, I propose that when a JV is formed, the partner that possesses more valuable resources is likely to earn lor alth gains whereas the partner that possesses less valuable resources is likely to earn higher alth gains because its potential for earning private benefits over the course of the venture is also higher. I then argue that the partner with less valuable resources is likely to extract higher private benefits and gain more when it has greater bargaining por and absorptive capacity. Conversely, the partner with more valuable resources is likely to protect itself better from appropriation when it has JV capabilities. I find support for these arguments in a sample of 344 ventures. The implications are that private benefits significantly influence value creation in JVs, and that a broad array of contingencies and factors affect these benefits which need to be considered when entering into a cooperation.
['M. V. Shyam Kumar']
I am writing a research paper on a idea Differential Gains Between Partners in Joint Ventures: Role of Resource Appropriation and Private Benefits
[{"from": "human", "value": "I am writing a research paper on a idea Differential Gains Between Partners in Joint Ventures: Role of Resource Appropriation and Private Benefits"}, {"from": "gpt", "value": "Thats a unique idea.You should consider the following idea to enhance your idea so that it would impact uniquely: I examine why there are differences in alth gains beten firms when they announce a joint venture (JV). Building on transaction cost economics and the resource-based view, I argue that, because JVs often involve incomplete contracts, differences in alth gains arise due to resource appropriation and private benefits. As a result, two factors become important in understanding whether a firm earns higher/lor alth gains than its partner: (1) its potential for earning private benefits and (2) its ability to extract private benefits. As a test of the impact of the first factor, I propose that when a JV is formed, the partner that possesses more valuable resources is likely to earn lor alth gains whereas the partner that possesses less valuable resources is likely to earn higher alth gains because its potential for earning private benefits over the course of the venture is also higher. I then argue that the partner with less valuable resources is likely to extract higher private benefits and gain more when it has greater bargaining por and absorptive capacity. Conversely, the partner with more valuable resources is likely to protect itself better from appropriation when it has JV capabilities. I find support for these arguments in a sample of 344 ventures. The implications are that private benefits significantly influence value creation in JVs, and that a broad array of contingencies and factors affect these benefits which need to be considered when entering into a cooperation."}]