This case study paper focuses on defining the key criteria for selecting a joint venture partner on emerging markets to minimize the risks of the partnership failure. The literature dealing with general partner selection criteria is rich. Only a little research was, however, conducted in terms of emerging economies. Therefore, the study combines a theoretical model with an empirical evidence to extend knowledge in this particular area. The literature review results in four main partner selection criteria, such as human resources (tangible resources), local market knowledge (intangible resources) as well as business and governmental networks. An empirical research was conducted through qualitative interviews to challenge the theoretical findings. The sample consisted of two leading Austrian manufacturing companies operating a joint venture in India. Although those participants confirmed that local market knowledge and networks are crucial on emerging markets, they accommodate different perspective in terms of tangible resources. Moreover, they add that company control and local partner’s international experience are fundamental.
Table of Contents
- Introduction
- Research question and objective
- Research methodology
- Theoretical review
- Joint venture
- Key criteria for selecting a partner
- Tangible resources
- Intangible resources
- Partnership experience
- Product
- Partner compatibility
- Culture
- Networks
- Emerging markets
- Key characteristics of emerging markets
- Key partner selection criteria on emerging markets
- Methodology
- Results
- Discussion
Objectives and Key Themes
This case study aims to define the key criteria for selecting a joint venture partner on emerging markets to minimize the risks of its failure. It combines a theoretical model with empirical evidence to extend knowledge in this area. The key themes of the paper include: * The importance of partner selection in the success of joint ventures, especially in emerging markets * The role of tangible and intangible resources, networks, and partner experience in partner selection * The specific challenges of partner selection in emerging markets, such as political instability, cultural diversity, and weaker institutions * The practical applications of the key criteria identified in the study, as demonstrated by case studies of two Austrian manufacturing companies operating joint ventures in IndiaChapter Summaries
Introduction
This chapter introduces the research question and objective, which is to identify the key criteria for selecting a joint venture partner on emerging markets. It also outlines the research methodology, which combines a literature review with a multiple case study approach.Theoretical review
This chapter provides a theoretical framework for the study by defining key concepts related to joint ventures, partner selection, and emerging markets. It discusses seven general categories of partner selection criteria, including tangible resources, intangible resources, partnership experience, product, partner compatibility, culture, and networks. It also explores the specific characteristics of emerging markets that influence partner selection, such as political instability, cultural diversity, and weaker institutions.Methodology
This chapter describes the research methodology used in the study, which is a multiple case study approach. It outlines the selection of two Austrian manufacturing companies operating joint ventures in India as case studies, and details the data collection and analysis methods used, including semi-structured interviews and qualitative content analysis.Results
This chapter presents the findings of the case studies, analyzing the key criteria for partner selection identified by the two companies. It demonstrates how the companies prioritize different criteria within the theoretical categories, highlighting the unique challenges and opportunities presented by the Indian market.Discussion
This chapter compares and contrasts the theoretical and empirical findings, analyzing the specific criteria that are most important for partner selection on emerging markets. It discusses how the empirical evidence both confirms and challenges the theoretical model, highlighting the importance of taking into account the specific context of each emerging market.Keywords
This paper focuses on joint ventures, partner selection, key criteria, emerging markets, and case study analysis. It explores tangible and intangible resources, networks, partner experience, and the specific challenges of partner selection in emerging markets. It also examines the practical applications of the key criteria identified, as demonstrated by the case studies of Austrian companies operating in India.Frequently Asked Questions
What are the key criteria for selecting a joint venture partner in emerging markets?
Key criteria include local market knowledge, access to governmental networks, international experience, and compatibility in terms of company control and culture.
Why is local market knowledge crucial in emerging economies?
Emerging markets often have complex regulations and unique consumer behaviors that a local partner can navigate more effectively than a foreign company alone.
How do networks influence joint venture success?
Both business and governmental networks are fundamental for overcoming institutional weaknesses and ensuring political stability for the partnership.
What did the case study of Austrian companies in India reveal?
The study confirmed that while intangible resources like networks are vital, tangible resources and the partner's international experience are equally fundamental for success.
What are the main risks of joint venture failure in these markets?
Risks include cultural clashes, lack of control, political instability, and choosing a partner without sufficient resources or market expertise.
- Quote paper
- Filip Linhart (Author), Claudia Knoll (Author), 2014, Key Criteria for Selecting a Joint Venture Partner on Emerging Markets, Munich, GRIN Verlag, https://www.grin.com/document/289007
