Bounded Reliability and the termination of international joint ventures – insights from the Mid-Med Bank, 1975–1979

Abstract

In the late twentieth century, the international joint venture (IJV) became an increasingly important yet unstable organisational form of international business. Based on insights provided by the Mid-Med Bank of Malta during the period 1975-1979, this article argues that the unanticipated termination of IJVs has endogeneity due to the bounded reliability of their partners’ decision makers, developed from the formative stage and influenced by inter/intra organisational relationships along the evolution of the IJVs. The findings thus contribute to our understanding of the nature of bounded reliability, contractual governance and the bargaining process.

Key Words:

• Bounded reliability
• international joint venture termination
• contractual governance
• obsolescing bargain
• Barclays

Acknowledgements

Many thanks for the continuous support received from Barclays Group Archives and Maria Sienkiewicz. A special thank you for continuous encouragement and constructive comments received from Prof. Robin Pearson on past versions of this article. Also greatly appreciate the two anonymous reviewers’ constructive feedback. Without their support and guidance, I would not have been able to present the current article. Any remaining errors are my own.

Additional information

Notes on contributors

Qing Lu

Dr Qing Lu is a lecturer at the Hull University Business School. Her current research interests are international banking, merger and acquisition, business – government relationship. Until now, out of her research she has published a monograph and articles in book chapter and journals such as Enterprise & Society and Business History.