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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.

The increasing pressure from clients and global construction trends have led the construction industry to seek better options for overcoming the emerging challenges and critical issues battling construction projects. The purpose of this paper is to assess the factors affecting the performance of partners in joint ventures construction projects in Nigeria.

Primary data were collected through the administration of questionnaire to partners and consultants who have engaged in joint venture construction project in partnership with the Lagos State Development and Property Corporation. The data obtained were analyzed using Mean Item Score, Wilcoxon‐Mann‐Whitney (U‐test) test, Kruskal‐Wallis (H‐test) test and factor analysis.

The study revealed that all the factors identified were significant to the performance of partners in joint venture construction with communication, compatibility of objectives and mutual understanding among partners ranked as the most important to the performance of partners in Joint Venture Projects. A KMO value of 0.743 was also derived indicating the suitability of the data for factor analysis.

The research could be beneficial to potential investors for deciding the factors that contribute significantly to the performance of Partners in Joint Venture Construction Projects for inclusion in the drafting of Joint Venture Agreements. The five groupings from factor analysis and their relationship will also help in developing a framework for Joint Venture Construction Projects.

The extracted factors and values will help to identify prioritized factors which could be used as an assessment tool to evaluate the performance of partners and thus identifying areas for improvement.

Despite the numerous benefits of adopting international construction joint ventures (ICJVs), effective operation of the joint ventures in Saudi Arabia is impeded by various limitations. Thus, this paper is aimed at determining, analyzing, and prioritizing these major limitations and to propose a strategy that can provide guidance on how best to promote the achievement of efficient joint ventures in international construction in Saudi Arabian construction industry.

Content analysis was augmented by the expert-based assessment process to identify the critical limitations while the interpretive structural modeling (ISM) technique was utilized to analyze and determine the hierarchical structure of the limitations. This is important in order to comprehend and describe the complex relationship between the limitations.

The results identified “selecting unsuitable partner”, “divergent organizational cultures, policies and procedures”, and “poor knowledge of local regulations by foreign partners” as the most critical limitations affecting the efficiency of joint ventures in international construction in Saudi Arabia.

The inclusion of many variables (limitations) increases the complexity of the ISM technique, which compels the researchers to consider reduced number of variables in establishing the ISM structural hierarchy. Other variables that were perceived to be less critical were not included in the development of the ISM structural hierarchy. On the other hand, the structural hierarchy was not validated statistically, and this requires the use of other linear structural relationship techniques like the Structural Equation Modeling to test the validity of the hypothetical ISM structural hierarchy. The proposed strategy to mitigate the limitations presented in this study was not validated, and this requires further study to verify the accuracy of the strategy.

The implications inferred in this study are better performing ICJVs in the execution of mega infrastructure projects in Saudi Arabia. The findings and managerial implications of the study are expected to further provide an invaluable guide that can support policymakers and all key stakeholders to establish efficient strategies and suitable measures that can enhance the successful implementation of ICJVs.

The findings of this study provide comprehensive understanding of the limitations affecting the efficiency of ICJVs in Saudi Arabia. This can assist in mitigating the potential impacts of these limitations and to advocate for the achievement of efficient joint ventures in international construction in Saudi Arabia. Meanwhile, there is a need to further develop a framework that can elucidate on the proposed strategy to promote better performing ICJVs in Saudi Arabia. Also, the further study will seek to investigate the influence of project duration, value, location, or ownership on the performance of the joint ventures in order to generalize the findings to all forms of ICJVs.

The study focuses on primarily big U.S. firms' joint venture activities with the Soviets after the break‐up of the former Soviet Union. It examines U.S.‐Soviet joint ventures in the following sectors: oil and gas, soft drinks, consumer products, gold mining, aircraft engines, telecommunications, and software. Data were collected by mail and interviews in order to identify the obstacles in the negotiation and operational stages of the venture. Furthermore, business and governmental organisations' recommendations as to whether or not U.S. firms should engage in joint venture activities in the Commonwealth of Independent States (CIS) were elicited.

Joint ventures in property development can bring considerable benefits to the parties. For example, in a joint venture involving a local authority the authority will be able to play a positive role in urban regeneration while the developer will gain credibility and hopefully obtain a smoother planning process. Examines the strengths and weaknesses of the three classic joint venture arrangements: joint venture companies; partnerships; and “contractual” joint ventures.

The study of international business has become increasingly important in recent years. So important that the American Assembly of the Collegiate Schools of Business (AACSB) has called for the internationalisation of business curricula. In 1992 and beyond, successful business people will treat the entire world as their domain. No one country can operate in an economic vacuum. Any economic measures taken by one country can affect the global economy. This book is designed to challenge the reader to develop a global perspective of international business. Globalisation is by no means a new concept, but there are many new factors that have contributed to its recently accelerated growth. Among them, the new technologies in communication and transport that have resulted in major expansions of international trade and investment. In the future, the world market will become predominant. There are bound to be big changes in the world economy. For instance the changes in Eastern Europe and the European Community during the 1990s. With a strong knowledge base in international business, future managers will be better prepared for the new world market. This book introduces its readers to the exciting and rewarding field of international management and international corporations. It is written in contemporary, easy‐to‐understand language, avoiding abstract terminology; and is organised into five sections, each of which includes a number of chapters that cover a subject involving activities that cross national boundaries.

The paper aims to study the impact of cultural differences on the ownership structure of international joint ventures in China. It is reasoned that foreign investors, when faced with larger culture‐related investment uncertainties, may have the incentive to acquire more control rights to contain the risks by acquiring more equity shares in the joint ventures.

Data on international joint ventures in China were used to test the theory. The data contain 941 observations from Beijing, Shanghai, Shenzhen and Tianjing, covering a 13‐year time span. Pooled ordinary least square is used in the model estimation.

Cultural distance between China and foreign countries was found to increase the foreign equity share in the joint ventures, a finding contrary to traditional view. In addition, it was found that cultural distance in different dimensions does not play an equal role in affecting foreign equity shares. Last, there is significant evidence that the allocation of ownership between foreign and domestic investors in the joint ventures is influenced by the investor's relative importance in supplying different types of resources.

The paper introduces a new perspective into the study of culture and international joint venture. Foreign investors may be able to reduce investment risk by increasing equity shares, which gives them more internal control, in international joint ventures. In contrast, the traditional view is that larger cultural distance tends to discourage foreign equity ownership.

This paper attempts to study the motives behind a Hong Kong‐Japanese joint venture between two retailers from the perspectives of firm‐specific advantages provided by both partners of the international joint ventures (IJVs). The analysis focuses on the local partner’s motives and how the IJVs have provided the opportunity for it to overcome the increasing Japanese competition in the retail sector after the mid‐1980s. Finally, the IJVs are evaluated according to the available secondary data in terms of how much the local partner has achieved from the IJVs.

Conventional theories of market entry assume choice availability. This investment assumption is subject to challenges in the power generation market of an emerging economy where the host government controls most key resources and market entry choices. With such constraints, entrants become heavily dependent on their host country partners. This study investigates how the resource dependency frameworks explain better in respect of some US power generation firms that manage to operate electricity facilities in China whereas some have to abort. Using cross‐case analysis, patterns emerged illustrate how two groups of entrants manage key resources differently.

Cultural differences have been frequently cited as a major source of risks for international joint ventures (IJVs). Cultural differences may cause extensive conflicts in technology, norms and emotion among the international joint venture (IJV) partners. The purpose of this study is to explore the interactive effects of national culture differences (NCDs) and conflict management approaches on the performance of international construction joint ventures (ICJV).

Data were collected using a questionnaire survey method with 143 valid responses. Partial least squares structural equation modeling (PLS-SEM) was used to test the research hypotheses.

It was found that ICJV performance declined with a high degree of NCDs. The negative effect of NCDs on ICJV performance was mitigated by adopting the cooperative conflict management approach; while it was aggravated by adopting the competitive conflict management approach. The findings may provide an alternative way (i.e. adopting the cooperative conflict management approach rather than avoiding or competitive approaches) to address the cultural conflicts in the multicultural project management teams.

Firstly, as NCD negatively impacts performance of ICJVs, project managers should pay attention to cultural issues and learn how to manage them; Secondly, as cooperative and competitive conflict management approaches have different moderating effects on the relationship between NCD and ICJV performance, project managers must choose appropriate conflict management styles in multination teams. Thirdly, as the avoiding approach has no significant moderating effect on the negative relationship between NCD and ICJV performance, it is important for Chinese partners not to employ avoiding approach to deal with conflicts in ICJV.

This study uniquely adds to the literature on cultural issues in managing ICJVs by integrating the moderating effects of conflict management approaches. The interactive effects of conflict management approaches and national cultural differences on ICJV project performance may contribute to the theories regarding conflict management theory in the context of cross-cultural management.