Anxiety of dependency in international joint ventures? An empirical study of drivers and consequences of relationship insecurity

This research introduces and delineates the concept of insecurity in IN relationships. We define relationship insecurity as a parent firm's concerns about the continuance of the alliance arrangement and its partner's future provision of need satisfaction. According to interdependence theory, exchange partners that experience high dependence inevitably experience this 'anxiety of dependency', and the emergence of insecurity can destabilize the working relationship from within. We develop a conceptual model of the drivers and consequences of relationship insecurity in IJVs. Our survey results from 125 IJVs indicate that focal firm dependence and partner firm dependence both negatively affect insecurity, though the former is the dominant predictor. This surprising finding implies IN partners experience 'anxiety of low dependency'. The results suggest insecurity not only reduces directly IN performance, but also lowers the quality of interpartner communication, which in turn dampens performance. Implications of these results are discussed. (c) 2006 Elsevier Inc. All rights reserved.