The Design and Management of International Joint Ventures• International joint venture – company that is owned by two or more firms of different nationalityo May be formed from starting (greenfield) basiso May be result of established companies deciding to merge divisions• Purpose pool resources and coordinate efforts to achieve results that neither partners could attain on their own• Equity joint venture – requires greatest level of interaction, cooperation and investmento Most joint ventures have three or more partners• Most companies use joint ventures as key element of corporate structureo Not just means to enter foreign markets anymoreo Popularity does not differ from year to year• Popularity rises despite reputation of being difficult to manageo Failures usually widely publicisedo Some of earlier concerns ameliorated primarily due to greater experience• Now: widespread appreciation that joint ventures are not necessarily transnational organisation forms, shorter lived, less profitable
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