Joint ventures were originated as commercial or maritime enterprises used for trading purposes by merchants of ancient Egypt, Babylon, and Syria. In the United States, joint ventures date back to the 1880's when the rairoads used them for large‐scale projects. In the early 1900's joint ventures were implemented to decrease the risk, financial and otherwise, involved in shipping and gold explorations. More recently, joint ventures have become predominant as a result of technological and economic changes that led from deregulation, globalisation, and increased need for product innovation [p.7].
Reports the results of an interview and field survey study onmanagement issues in 25 Sino‐foreign joint‐venture companies. Jointventures are shown to have three special…
Reports the results of an interview and field survey study on management issues in 25 Sino‐foreign joint‐venture companies. Joint ventures are shown to have three special characteristics: transformation, system and management. Compatibility issues, in terms of values, motives, leadership styles, are cultural, social and structural. Proposes three managerial psychology strategies to improve management of joint ventures further. Suggests some useful predictors and criteria for the assessment and evaluation of joint‐venture effectiveness.
Intellectual joint ventures can be very useful vehicles for conducting cross‐cultural, international human resource management research as witnessed by the proliferation…
Intellectual joint ventures can be very useful vehicles for conducting cross‐cultural, international human resource management research as witnessed by the proliferation of these alliances. Challenges to the successful development, operation and goal attainment of intellectual joint ventures inhibit the ability to reap all of the benefits promised from these collaborative efforts. This article identifies and elaborates on challenges or inhibitors to intellectual joint venture success. By focusing on challenges driven by career stage and career anchor asymmetry this article extends earlier research on intellectual joint ventures. In conclusion, recommendations for overcoming or attenuating the effects of these success inhibitors are offered. The dramatic increase in use of intellectual joint ventures in applied social science research is noteworthy. Previous research has identified an intellectual joint venture as a team of researchers from several countries and/or disciplines who jointly conduct research. Current examples of intellectual joint ventures in the field of human resource management include the best international human resource management project, the Cranfield Network on European Human Resource Management Project, the Lund Project on Learning and Training in Organisations (LATIO), the European Managerial Decision‐making Project, the Global Leadership and Organizational Behaviour Effectiveness (GLOBE) project, and the European Union Copernicus/Oxford project
Cultural differences between employees of different nationalities are hindering the development of some transnational joint ventures. Describing and modelling the positive…
Cultural differences between employees of different nationalities are hindering the development of some transnational joint ventures. Describing and modelling the positive (or negative) factors that cause joint venture employees to accept (or reject) joint management business practices is of great value to all corporations operating abroad with locally sourced employees.
This study uses a Sino-Japan construction joint venture project as a representative case study. First, structural equation modelling is used to identify the factors influencing Chinese employees' acceptance of joint venture management practices. Then, a system dynamics model is adopted to simulate the time-dependent effects of the incentives.
The study results (1) indicate which incentives strongly affect employee acceptance of joint venture management practices; (2) identify inefficient management practices in cross-cultural joint ventures; and (3) provide evidence that the employees' perceptions of clear purpose, good working relationships and helpful mechanisms positively and directly also support their acceptance of joint management practices.
–A dynamic simulation method is used to analyse the influence of various incentive factors on employee acceptance of joint management. This provides unprecedented information regarding how these factors interact with each other, hence how their effectiveness varies (both positively and negatively) over time. Further findings also provide new ideas for joint venture managers to adopt more effective management methods.
Despite the growing interest in IJVs and their governance, systematic research is limited on the board of directors and their roles in international joint ventures in…
Despite the growing interest in IJVs and their governance, systematic research is limited on the board of directors and their roles in international joint ventures in emerging markets. In this study, we draw from corporate governance research that suggests that the levels of control and collaboration by boards are influenced by organizational complexity. While joint ventures possess several similarities compared to unitary firms, they also have unique sources of complexity given the fact that two or more international partners collaborate within JVs under an incomplete contract. Based on a sample of 114 IJVs, we argue and show four separate conditions that influence the functions that boards undertake as well as how control and collaboration as two separate functions are interrelated. Our findings address calls for research to open the black box of what boards actually do as well as to bring corporate governance theory to new organizational forms such as joint ventures.
Partner firms to the same joint venture experience sharply different stock price reactions. These differences cannot be explained by mechanical factors related to…
Partner firms to the same joint venture experience sharply different stock price reactions. These differences cannot be explained by mechanical factors related to differences in firm size and ownership share in the project, nor are they attributable to different partner roles in the project or differences in investor anticipation of the announcement. We conclude that the stock price reactions reflect a revaluation of non-project assets that is different for each partner. Additionally, we find evidence indicating that investors infer information about agency problems (in the sense of Jensen, 1986) from the joint venture announcements and subsequently, revalue the whole firm – not just the marginal project being announced. Finally, we find that free cash flow is value-enhancing for one type of partner firm after we control for the extent of agency problems.
This study investigates, both theoretically and empirically, the effects of joint ventures on traffic. Although alliances are a pre-condition for joint ventures, both…
This study investigates, both theoretically and empirically, the effects of joint ventures on traffic. Although alliances are a pre-condition for joint ventures, both cooperation agreements are different in their nature. The reason is that alliances are revenue-sharing agreements, whereas joint ventures also involve a cost-sharing commitment. Our empirical analysis focuses on the transatlantic market, including non-stop routings (interhub markets) and one-stopover routings (interline markets). Our theoretical and empirical findings emphasize the relevance of economies of traffic density and reveal a positive effect of joint ventures on traffic, both in interhub and interline markets.
Different forms of inter-organisational encounters, including joint ventures, alliances, mergers and acquisitions, have over the last decades become fashionable and…
Different forms of inter-organisational encounters, including joint ventures, alliances, mergers and acquisitions, have over the last decades become fashionable and much-sought means of globalisation. A continuous concern shared by managers involved in these different forms of inter-organisational encounters is the challenge of making them work in practice – their successful implementation and management. The cultural dimensions of these different kinds of inter-organisational encounters, particularly in cross-border contexts, have been deplored as being particularly difficult. This paper builds on prior research and aims to understand how the cultural dimensions of inter-organisational encounters have been approached by researchers on mergers and acquisitions on the one hand and researchers on alliances and joint ventures on the other hand. Based on a comparative literature review, the findings suggest that the two fields, despite their valuable contributions and the similarities in the phenomena they study, have remained surprisingly isolated from one another and would offer opportunities for cross-fertilisation. Through its theoretical contribution, the paper intends to offer insights to researchers in both streams of research.
This study examines the determinants of performance of foreign manufacturing subsidiaries in Japan. The study finds that a foreign parent’s size, the subsidiary’s age, and…
This study examines the determinants of performance of foreign manufacturing subsidiaries in Japan. The study finds that a foreign parent’s size, the subsidiary’s age, and a complicated distribution system influence a subsidiary’s performance. There was little significant change in these determinants over a 20-year period. However, for subsidiaries that survived over the observation period of this study, some determinants changed. We also found that by forming joint ventures with Japanese firms, foreign firms can overcome the obstacle of distribution and circumvent the disadvantage of inexperience. Moreover, the mitigating effects of joint ventures vary, depending on the type of Japanese partner.