Joint Venture Formations in the Information Technology Sector a Diffusion of I
Joint Venture Formations in the Information Technology Sector a Diffusion of I
N Venkatraman
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A Diffusion of Innovation Perspective 9 received favorably by the stock market with significant, positive abnormal returns in general (McConnell & Nan tell, 1985) as well as in the I. T. Sector (Koh & Venkatraman, 1989). This reinforces the possibility of competitive isomorphism in the formation of joint ventures, supporting the imitation hypothesis. Hence, we argue that the environmental factors (e. G. , the rapid rate of technological change) play the critical role of amplifying the significa...nce of joint ventures as an administrative innovation. Further, it is likely that competitive and mimetic isomorphism would govern the decision to form joint ventures in industries with high environmental uncertainty. The general research proposition, therefore, is: Proposition: The diffusion of joint ventures among the firms would follow the imitation behavior in industries where environmental uncertainty [such as the rapid rate of technological change] is relatively high. Rival Arguments However, there are rival arguments against the imitation hypothesis that need to be recognized.
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