02037nas a2200193   4500008004100000245009700041210006900138260000900207300001200216490000700228520136700235653003201602100001701634700002001651700001701671700001301688700001501701856012701716       2008                        eng d00aThe evolution and internalization of international joint ventures in a transitioning economy0 aevolution and internalization of international joint ventures in  c2008  a491-5070 v393 aAlthough international joint ventures (IJVs) may mature over time and develop competitive viability, they maintain some risk of instability owing to their shared ownership. Such instability can ultimately lead to their internalization by one of the partners. In this study, we consider factors that influence (1) whether IJVs evolve toward becoming a wholly owned subsidiary, and (2) which parent (foreign or local) gains ownership of the venture. We use a sample of Hungarian joint ventures, and find that only when there is both a power imbalance between the parents and high levels of conflict is the likelihood that the joint venture converts to a wholly owned subsidiary enhanced. The extent to which the joint venture has learned from the foreign parent indirectly determines which parent gains full ownership. Extensive knowledge transfer to a joint venture in a transitioning economy combined with high levels of conflict increases the likelihood of the foreign parent gaining full ownership. In contrast, when there is extensive knowledge transfer and low conflict between the parents, the local parent is more likely to internalize the venture. Our results suggest that the relationship between partner power and outcomes in ventures is more complex than originally believed, and is contingent upon the level of conflict between the parents of the IJV.10aStrategy & Entrepreneurship1 aSteensma, K.1 aBarden, Jeffrey1 aDhanaraj, C.1 aLyles, M1 aTihanyi, L  u/biblio/evolution-and-internalization-international-joint-ventures-transitioning-economy-0