1. ¹Queen's School of Business, Queen's University, Kingston, Ontario, Canada
2. ²Schulich School of Business, York University, Toronto, Ontario, Canada

Correspondence: J-P Roy, Queen's School of Business, Queen's University, Kingston, Ontario, Canada K7L 3N6. Tel: +1 613 533 6402; Fax: +1 613 533 2325; E-mail: jroy@business.queensu.ca

Received 18 September 2006; Revised 28 February 2008; Accepted 16 April 2008; Published online 5 March 2009.

Abstract

This study attempts to enhance our understanding of how a host country's legal environment influences international joint venture (IJV) partner selection criteria. Empirical results based on survey data collected on 169 IJVs revealed that host-country rule of law perceptions negatively influence appropriation and coordination cost concerns, which positively influence partner-related criteria. Furthermore, these concerns mediate the relationship between perceptions of host-country rule of law and partner-related criteria.