Why are some International Joint Ventures a Success whereas others are a Failure?

Seminar paper from the year 2008 in the subject Business economics - Miscellaneous, grade: 2,0, Zeppelin University Friedrichshafen, course: International Economics, language: English, abstract: Regarding the key factors for success or failure of an IJV two decisive clusters can be detected, namely factors in the company-internal and the company-external environment. The internal environment is characterised above all by the aspects partner attributes and partner fit, the degree of trust, as well as governance and the leadership team. The external environment is shaped by both country- and industry-specific conditions and of course also by global determinants. The interaction of these various factors and the two clusters of factors in general exerts influence on the performance of the IJV and therefore determines success or failure.

The outcome of IJVs in turn is connected with foreign direct investment and international trade flows which makes the performance important for these topics, as well. In both cases different perspectives on the particular connection can be adopted. Consequently, contrary results, either a positive or a negative correlation between on the one hand the performance of the IJVs and on the other hand foreign direct investment and international trade flows, can be achieved.