This article investigates the dynamics of joint venture formation and performance during the internationalization process, using data on the international joint ventures formed by the 22 largest Japanese multinational enterprises (MNEs) over a 16-year period. Three themes emerged: (a) large multinational enterprises do not necessarily seek a controlling equity holding in their subsidiaries, (b) the number of partners is affected by the risk profile of the targeted host country and previous international experience, and (c) controlling equity ownership and the greater the number of partners in the joint venture increase the likelihood of survival but do not significantly influence financial performance.