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.
Inhaltsverzeichnis (Table of Contents)
- Fundamentals of International Joint Ventures
- Introduction
- Definition of an (International) Joint Venture
- Key Factors for Succes or Failure
- Reasons for establishing an International Joint Venture
- Key Factors
- Internal Environment
- External Environment
- Importance of Key Factors in Comparision
- Case Studies
- Shanghai Volkswagen Automotive Company Ltd. (SVW)
- Deer Park Refining Ltd. Partnership (DPRLP)
- International Joint Ventures and Foreign Direct Investment
- International Joint Ventures and international Trade Flows
- Critical Assessment
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This seminar paper aims to explore the factors contributing to the success or failure of international joint ventures (IJVs). It examines the significance of IJV performance for both foreign direct investment (FDI) and international trade flows.
- Internal and external factors influencing IJV success or failure.
- The role of partner attributes, trust, governance, and leadership in IJV performance.
- The impact of country-specific and industry-specific conditions on IJV success.
- The relationship between IJV performance and FDI.
- The link between IJV performance and international trade flows.
Zusammenfassung der Kapitel (Chapter Summaries)
The first chapter introduces the concept of international joint ventures, defining them within a broader framework of market entry strategies. It explores key motivational factors behind the establishment of IJVs, setting the stage for analyzing their performance.
Chapter two dives into the crucial factors that determine the success or failure of IJVs. It delves into the internal environment, highlighting the importance of partner attributes, trust, governance, and leadership. It also examines the external environment, considering country-specific and industry-specific conditions.
Chapter three focuses on the intricate relationship between IJVs and foreign direct investment (FDI). It explores different perspectives on this connection, recognizing potential for both positive and negative correlations between IJV performance and FDI.
Chapter four investigates the link between IJVs and international trade flows. Similar to the FDI analysis, it acknowledges the possibility of diverse perspectives and examines the potential for varying correlations between IJV performance and international trade flows.
Schlüsselwörter (Keywords)
International joint ventures, success factors, failure factors, partner attributes, trust, governance, leadership, country-specific conditions, industry-specific conditions, foreign direct investment (FDI), international trade flows.
- Quote paper
- Isabella Aberle (Author), 2008, Why are some International Joint Ventures a Success whereas others are a Failure?, Munich, GRIN Verlag, https://www.grin.com/document/142226
