The document discusses international joint ventures (IJVs) between companies from different countries. It defines an IJV as a legally separate entity jointly owned and controlled by two or more parent companies from different nations. IJVs allow companies to combine their resources and expertise to enter new markets, share risks and costs, and gain access to new technologies and distribution networks. Specifically, the document focuses on strategic IJVs which involve long-term cooperation between partners across multiple projects. Factors that drive the formation of IJVs include gaining market power through combined resources, reducing financial risks, achieving economies of scale, and avoiding competition between partners by cooperating within the IJV.
Alliance Best Practice Research into Cultural Factors in Strategic Alliance R...Mike Nevin
This research presentation was produced from 93 separate alliance manager inputs from organisations such as: PPD, Quintiles, Cognizant, Covance, ICON, and RPS.
The research shows a very high correlation between Cultural Success Factors in alliances and overall success.
This presentation is based on the topic of strategic alliance.
What is strategic alliance and how companies are availing it for the long term and short term benefits?
Alliance Best Practice Research into Cultural Factors in Strategic Alliance R...Mike Nevin
This research presentation was produced from 93 separate alliance manager inputs from organisations such as: PPD, Quintiles, Cognizant, Covance, ICON, and RPS.
The research shows a very high correlation between Cultural Success Factors in alliances and overall success.
This presentation is based on the topic of strategic alliance.
What is strategic alliance and how companies are availing it for the long term and short term benefits?
Joint Ventures between a foreign multinational and local entity are common across Asia, but can be a minefield and often fail to live up to expectations. Over 8 years, more than 100 real-life examples have been studied across multiple industries and markets to identify what are the common key to success and reasons for failure
Building High Performance Team in Top ManagementHora Tjitra
Given the increasing globalization and international mergers & acquisitions, the number of international joint ventures (IJV) has been growing strongly in recent years. The success of such IJV depends very much on how successful the top management can communicate, interact and collaborate together as a high-performance team.
An important element here is the identification of the top management with the joint venture as well as their competence and sensitivity in dealing with cross-cultural differences.
Prof. Dr. Hora Tjitra will present recent studies and best practice examples from Asia (China) on the challenges and potentials in building high-performance teams in an IJV. Subsequently the culture-specific intercultural sensitivity will be discussed, highlighting examples from Germany, China and Indonesia.
The contemporary business environment has been highly complex and dynamic with organizations facing unprecedented amount of competition due to globalization and technological innovations. Merger and acquisition is one of the most popular organization strategy that organizations apply when faced with this kind of operating environment acquiring resources, skills, and competencies beyond their organization control. Many studies have been done to support implementation of M&As within organizations but they have indicated conflicting outcomes with some showing that it negatively affect organization performance and others indicating they positively affect performance. However, none of the studies done has concentrated on the effect within the privately traded organizations and very few but conflicting studies have been done on this relationship in Kenya. This study therefore sought to assess the effects of merger and acquisition on the performance of privately trading organizations in Kenya. The study was grounded upon the efficiency theory, the market power theory, and economic production theory. Reviewed literature revealed existing gaps related to the literature. The study adopted descriptive research design on short run data collected at UAP Insurance within the pre-merger (2012-2014) and post-merger (2015-2017) periods for various performance statistics, where descriptive analysis was applied to assess the differences and independent sample t-test. The study found that M&A affects the net profit margin, Return on Assets, Return on Equity, and earnings per share with all these performance indicators showing that the post-merger period had poorer performance than the pre-merger period. The study further observed that the M&A implementation caused serious disruptions in the operating environment and organization culture of the organization, which was bound to have negative implications on organization performance, employees and shareholders. The study recommends that organizations should avoid M&A strategy unless their current assets are able to fund their current liabilities beyond the short run period, as the declined performance was linked to the disruptions experienced from M&A implementations. The study also recommends that M&A intended changes should occur sequentially to cushion the organization internal operations from the disruptions due to the changes. Study suggests further studies assessing the long term impact of M&A on organization performance.
This paper scrutinizes Determinants of Capital Structure: A study on some selected corporate firms in Bangladesh. We have taken 10 out of 37 listed companies of DSE dividing into two sectors i.e. Pharmaceuticals and chemicals and Tannery sector, five years data from 2013 to 2017 has been collected from respective annual reports. Total number of observations was 50. There are different factors that affect a firm's capital structure decision. We use leverage (D/E ratio) as dependent variable and independent variables are profitability, tangibility, tax, size, growth, non-debt tax shield (NDTS) and financial costs. By using Descriptive Statistical Analysis, Correlation Analysis and Regression Analysis tools we find that Tangibility, size, NDTS, and financial costs are positively related with leverage and Profitability, tax, and growth are negatively related with leverage. In our analysis we see profitability, tangibility of asset, growth and non-debt tax shield have significant association. So when we take capital structure decision of the above firms we should consider profitability, tangibility of asset, growth and non-debt tax shield because other independent variables are insignificant in the context of Bangladesh economy.
The findings of the study suggested that growth is the goal of synergy exploitation. Growth is typically
seen in forecasted and realized revenues at a suitable profit margin. Growth synergies, when experienced, will
improve financial performance depending on the revenue opportunity
Purpose of AssignmentThe purpose of the learning team assignme.docxwoodruffeloisa
Purpose of Assignment
The purpose of the learning team assignment is to offer students the opportunity to investigate their understanding of how globalization affects a company's strategic plan. Additional objectives include allowing students to assess the effectiveness of strategic alliances in the growth process of a company and to understand the necessity for innovation to create a sustainable long-term organizational environment. The students will also identify how organizational structures facilitate company growth and controls in the global environment.
Assignment Steps
Create a 4-slide Microsoft® PowerPoint® presentation (excluding the title slide and references) with speaker notes and address the following topic:
· Evaluate the effects of globalization on strategic management planning.
International Journal of Management Vol. 29 No. 4 Dec 2012 531
The Effects of International Diversification on Firm
Performance: An Empirical Study across Twelve
European Countries
Alfredo M. Bobillo
University of Valladolid, Spain
Felix López-Iturriaga
University of Valladolid, Spain
Fernando Tejerina-Gaite
University of Valladolid, Spain
The relationship between international diversification and firm performance is a
binomial that has led to many investigations leading to mixed results, in some cases
there is a positive relationship, in others no significant relationship or even negative. In
this paper we try to find the possible reasons why these results occur. The international
diversification is assessed by the ratio of exports to total turnover. Besides, we extend
the research to the different performance that industrial and service firms could have,
bearing in mind, too, if their business culture base originates from civil law or common
law countries. Based on a sample of 1721 firms from twelve European countries, we
compare this relationship for the 2000-2009 period. The empirical results obtained
show a stronger ID-performance positive relationship in service firms than in industrial
ones. Those firms with a culture based on civil law systems (bank oriented financial
system) will have greater flexibility to counteract the negative relationship between ID
and performance, than those firms with culture based on common law systems (capital
market oriented system).
Introduction
Accessing foreign markets is becoming a more and more attractive option for firms.
International diversification (ID) is a stabilisation procedure for the firm’s sales and
also a way of reducing the risks derived from the reduction in demand on the domestic
market. Likewise, the presence of a firm on the global market entails greater derived
risks, mainly due to the greater uncertainty and commitment of resources entailed by this
action. It also represents a challenge to improve their competitiveness in their fight with
local firms (Lucas, 1993; Bowen & Wersema, 2005). The degree of internationalisation is
also contemplated a ...
Strategic management managing mergers and acquisitionsIJBBR
In this paper we have discussed what mergers and acquisitions are and how they are a part of any
organizations strategic planning policy. Organizations ‘merge’ generally with similar organizations or
‘acquire’ weaker organizations, and the essence as to why they do so is that the value of two is greater than
one. They basically merge with or acquire each other’s strengths and try to overcome one another’s
weaknesses thus leading to increased market shares and profitability. We have discussed the various
rationales for mergers and acquisitions like the strategic rationale, speculative rationale, management
failure rationale etc, along with their types that include vertical integration, horizontal integration and
conglomeration. We have also put light on how companies go strategically about mergers and acquisitions.
The merger and acquisition life cycle aided by real examples (case studies) will offer a vivid understanding
of these concepts to the reader.
Factors Influencing the Growth of Venture CapitalIntroduct.docxmecklenburgstrelitzh
Factors Influencing the Growth of Venture Capital
Introduction
Many people dream of starting their businesses. There are several reasons why entrepreneurs would be willing to start their businesses. However, many of them get stuck because of a lack of capital since many financial institutions don't lend in the absence of collateral security. Some get lucky enough to get financial support from their savings or families and friends. But for others, there is only one alternative to obtain funds and start their businesses, and that is through venture capital. This is a part of private equity capital that is normally given for new start-ups that promise potential growth in the aim of getting a return on investment. In other words, venture capital investment is generally refers to cash in exchange for a share in the invested business.
Structure of Venture Capital
Venture capitalists (VC) refer to an investment firm or a person making venture investments. Apart from the issuance of capital, venture capitalists (VCs) also play a role in managing the business at an early stage, thus adding expertise skills. Kwak (2019) tells us that because there is a high risk of losing all investment in a given start-up company, most venture capital investments are done a pool format, where investors combine their portfolios into one large fund that invests in different start-ups. By doing this, they spread out risks hence improve their return on investments
According to Wallmeroth, Wirtz & Groh (2018), venture capital is generally used as a tool for economic development in underdeveloped countries. For the past few decades, venture capital has attained substantial growth especially in the developing economies where a considerable increase in economic activities has been observed of late. The main reason for this could be the search for different profitable markets that have gone through economic maturity, given that the developed markets have shown a slight decrease in profitability levels due to trade wars currently at play. Despite venture capital being widely disseminated worldwide, but the activity is mostly concentrated in America. In this paper, I will aim to understand the factors that drive the growth of venture capital.
Motives that drive Venture Capital
The venture capital market contains three elements namely management organization, capitalists, and invested corporations. In simplifying the dynamic market, capitalists invest their investments which are controlled by management organizations, which in turn, buy a stake in investment firms for a specified period (Maula, Autio & Murray, 2010).
· Organization Innovativeness
To clearly illustrate motives for venture capital, it’s essential to analyze the level of growth and development as a result of the effectiveness of measures at the organizational level. Generally, the organizations’ interest in creating venture funds has been largely influenced by the venture capital climate. Most companies gene.
Factors Influencing the Growth of Venture CapitalIntroduct.docxlmelaine
Factors Influencing the Growth of Venture Capital
Introduction
Many people dream of starting their businesses. There are several reasons why entrepreneurs would be willing to start their businesses. However, many of them get stuck because of a lack of capital since many financial institutions don't lend in the absence of collateral security. Some get lucky enough to get financial support from their savings or families and friends. But for others, there is only one alternative to obtain funds and start their businesses, and that is through venture capital. This is a part of private equity capital that is normally given for new start-ups that promise potential growth in the aim of getting a return on investment. In other words, venture capital investment is generally refers to cash in exchange for a share in the invested business.
Structure of Venture Capital
Venture capitalists (VC) refer to an investment firm or a person making venture investments. Apart from the issuance of capital, venture capitalists (VCs) also play a role in managing the business at an early stage, thus adding expertise skills. Kwak (2019) tells us that because there is a high risk of losing all investment in a given start-up company, most venture capital investments are done a pool format, where investors combine their portfolios into one large fund that invests in different start-ups. By doing this, they spread out risks hence improve their return on investments
According to Wallmeroth, Wirtz & Groh (2018), venture capital is generally used as a tool for economic development in underdeveloped countries. For the past few decades, venture capital has attained substantial growth especially in the developing economies where a considerable increase in economic activities has been observed of late. The main reason for this could be the search for different profitable markets that have gone through economic maturity, given that the developed markets have shown a slight decrease in profitability levels due to trade wars currently at play. Despite venture capital being widely disseminated worldwide, but the activity is mostly concentrated in America. In this paper, I will aim to understand the factors that drive the growth of venture capital.
Motives that drive Venture Capital
The venture capital market contains three elements namely management organization, capitalists, and invested corporations. In simplifying the dynamic market, capitalists invest their investments which are controlled by management organizations, which in turn, buy a stake in investment firms for a specified period (Maula, Autio & Murray, 2010).
· Organization Innovativeness
To clearly illustrate motives for venture capital, it’s essential to analyze the level of growth and development as a result of the effectiveness of measures at the organizational level. Generally, the organizations’ interest in creating venture funds has been largely influenced by the venture capital climate. Most companies gene ...
Similar to The case of_thai_joint_venture_with_japanese_partn (20)
Abhay Bhutada Leads Poonawalla Fincorp To Record Low NPA And Unprecedented Gr...Vighnesh Shashtri
Under the leadership of Abhay Bhutada, Poonawalla Fincorp has achieved record-low Non-Performing Assets (NPA) and witnessed unprecedented growth. Bhutada's strategic vision and effective management have significantly enhanced the company's financial health, showcasing a robust performance in the financial sector. This achievement underscores the company's resilience and ability to thrive in a competitive market, setting a new benchmark for operational excellence in the industry.
how to swap pi coins to foreign currency withdrawable.DOT TECH
As of my last update, Pi is still in the testing phase and is not tradable on any exchanges.
However, Pi Network has announced plans to launch its Testnet and Mainnet in the future, which may include listing Pi on exchanges.
The current method for selling pi coins involves exchanging them with a pi vendor who purchases pi coins for investment reasons.
If you want to sell your pi coins, reach out to a pi vendor and sell them to anyone looking to sell pi coins from any country around the globe.
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how to sell pi coins in South Korea profitably.DOT TECH
Yes. You can sell your pi network coins in South Korea or any other country, by finding a verified pi merchant
What is a verified pi merchant?
Since pi network is not launched yet on any exchange, the only way you can sell pi coins is by selling to a verified pi merchant, and this is because pi network is not launched yet on any exchange and no pre-sale or ico offerings Is done on pi.
Since there is no pre-sale, the only way exchanges can get pi is by buying from miners. So a pi merchant facilitates these transactions by acting as a bridge for both transactions.
How can i find a pi vendor/merchant?
Well for those who haven't traded with a pi merchant or who don't already have one. I will leave the what'sapp number of my personal pi merchant who i trade pi with.
Message: +12349014282 VIA Whatsapp.
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1. Elemental Economics - Introduction to mining.pdfNeal Brewster
After this first you should: Understand the nature of mining; have an awareness of the industry’s boundaries, corporate structure and size; appreciation the complex motivations and objectives of the industries’ various participants; know how mineral reserves are defined and estimated, and how they evolve over time.
Financial Assets: Debit vs Equity Securities.pptxWrito-Finance
financial assets represent claim for future benefit or cash. Financial assets are formed by establishing contracts between participants. These financial assets are used for collection of huge amounts of money for business purposes.
Two major Types: Debt Securities and Equity Securities.
Debt Securities are Also known as fixed-income securities or instruments. The type of assets is formed by establishing contracts between investor and issuer of the asset.
• The first type of Debit securities is BONDS. Bonds are issued by corporations and government (both local and national government).
• The second important type of Debit security is NOTES. Apart from similarities associated with notes and bonds, notes have shorter term maturity.
• The 3rd important type of Debit security is TRESURY BILLS. These securities have short-term ranging from three months, six months, and one year. Issuer of such securities are governments.
• Above discussed debit securities are mostly issued by governments and corporations. CERTIFICATE OF DEPOSITS CDs are issued by Banks and Financial Institutions. Risk factor associated with CDs gets reduced when issued by reputable institutions or Banks.
Following are the risk attached with debt securities: Credit risk, interest rate risk and currency risk
There are no fixed maturity dates in such securities, and asset’s value is determined by company’s performance. There are two major types of equity securities: common stock and preferred stock.
Common Stock: These are simple equity securities and bear no complexities which the preferred stock bears. Holders of such securities or instrument have the voting rights when it comes to select the company’s board of director or the business decisions to be made.
Preferred Stock: Preferred stocks are sometime referred to as hybrid securities, because it contains elements of both debit security and equity security. Preferred stock confers ownership rights to security holder that is why it is equity instrument
<a href="https://www.writofinance.com/equity-securities-features-types-risk/" >Equity securities </a> as a whole is used for capital funding for companies. Companies have multiple expenses to cover. Potential growth of company is required in competitive market. So, these securities are used for capital generation, and then uses it for company’s growth.
Concluding remarks
Both are employed in business. Businesses are often established through debit securities, then what is the need for equity securities. Companies have to cover multiple expenses and expansion of business. They can also use equity instruments for repayment of debits. So, there are multiple uses for securities. As an investor, you need tools for analysis. Investment decisions are made by carefully analyzing the market. For better analysis of the stock market, investors often employ financial analysis of companies.
5 Tips for Creating Standard Financial ReportsEasyReports
Well-crafted financial reports serve as vital tools for decision-making and transparency within an organization. By following the undermentioned tips, you can create standardized financial reports that effectively communicate your company's financial health and performance to stakeholders.
how to sell pi coins effectively (from 50 - 100k pi)DOT TECH
Anywhere in the world, including Africa, America, and Europe, you can sell Pi Network Coins online and receive cash through online payment options.
Pi has not yet been launched on any exchange because we are currently using the confined Mainnet. The planned launch date for Pi is June 28, 2026.
Reselling to investors who want to hold until the mainnet launch in 2026 is currently the sole way to sell.
Consequently, right now. All you need to do is select the right pi network provider.
Who is a pi merchant?
An individual who buys coins from miners on the pi network and resells them to investors hoping to hang onto them until the mainnet is launched is known as a pi merchant.
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I'll provide you the what'sapp number.
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Lecture slide titled Fraud Risk Mitigation, Webinar Lecture Delivered at the Society for West African Internal Audit Practitioners (SWAIAP) on Wednesday, November 8, 2023.
Seminar: Gender Board Diversity through Ownership NetworksGRAPE
Seminar on gender diversity spillovers through ownership networks at FAME|GRAPE. Presenting novel research. Studies in economics and management using econometrics methods.
What price will pi network be listed on exchangesDOT TECH
The rate at which pi will be listed is practically unknown. But due to speculations surrounding it the predicted rate is tends to be from 30$ — 50$.
So if you are interested in selling your pi network coins at a high rate tho. Or you can't wait till the mainnet launch in 2026. You can easily trade your pi coins with a merchant.
A merchant is someone who buys pi coins from miners and resell them to Investors looking forward to hold massive quantities till mainnet launch.
I will leave the what's app number of my personal pi vendor to trade with.
+12349014282
What website can I sell pi coins securely.DOT TECH
Currently there are no website or exchange that allow buying or selling of pi coins..
But you can still easily sell pi coins, by reselling it to exchanges/crypto whales interested in holding thousands of pi coins before the mainnet launch.
Who is a pi merchant?
A pi merchant is someone who buys pi coins from miners and resell to these crypto whales and holders of pi..
This is because pi network is not doing any pre-sale. The only way exchanges can get pi is by buying from miners and pi merchants stands in between the miners and the exchanges.
How can I sell my pi coins?
Selling pi coins is really easy, but first you need to migrate to mainnet wallet before you can do that. I will leave the what'sapp contact of my personal pi merchant to trade with.
+12349014282
Pensions and housing - Pensions PlayPen - 4 June 2024 v3 (1).pdf
The case of_thai_joint_venture_with_japanese_partn
1. The case of Thai Joint Enterprise With Japanese Partner in Building
Business
Literature Review
Company within the 21st century is increasingly carried out with
shifting borders. International partnerships will become standard
apply because the item life cycles shorten and immediate distribution
turn out to be imperative. As company is increasing its globalization,
alliances among multinational firms are becoming much more popular.
Cooperation between international companies can take many forms
such as, cross-licensing of proprietary technologies, sharing of
manufacturing amenities, co-funding of research tasks, and advertising
of each other's products using current distribution networks (Griffin
and Pustay, 2005). This kind of forms of cooperation are referred to
as strategic alliances, company arrangements whereby two or even more
companies choose to cooperate for his or her mutual advantage. A joint
enterprise is a particular and much more formal kind of strategic
alliance.
two.1 Defining International Joint Venture (IJV)
An worldwide joint venture (IJV) is a unique type of strategic
alliance in which two or even more businesses from various nations be
a part of together to create a new business entity that is legally
separate and distinct from its mother and father. Joint ventures are
normally established as companies and therefore are owned from the
founding parents in whatever proportions they negotiate. Even though
unequal ownership is common, many are owned equally from the founding
companies (Berger, 1999).
Here's also a definition adapted from Shenkar and Zeira (1987):
one it's a separate legal organisational entity, and belongs entirely
to neither/none of its mother or father;
2 it's jointly controlled by its mother or father;
three these parents are legally impartial of every other;
four the headquarters of at least 1 mother or father is situated
outdoors the nation in which the IJV operates.
As mentioned some IJVs are shaped on an equity basis, much more
versatile preparations might rely on contract cooperation with out
involving the legal commitments of equity. Some IJVs might have more
than two mother and father. Generally, the more mother and father
the higher the administrative complexities and also the higher the
issue of controlling the undertaking. Occasionally, both (or all)
mother and father are located outside the IJV country. For instance,
Coca Cola (Vietnam) was began as an IJV between Coca Cola (USA) and
a Singaporean bottler; originally it did not employ any Vietnamese
managers, like a result the business required to deal with cultural
distinction (Beamish, 1985).
In terms of the building industry, joint enterprise continues to
be noticed like a tool for enhancing the performance with the
construction procedure and emphasizes the way in which it helps to
create synergy and increase the usefulness of each participant's
resources (Barlow et al., 1997).
The Building Business Institute defines joint ventures as a long-
term dedication in between two or even more organisations for that
2. purpose of attaining specific company objectives by maximizing the
effectiveness of every participant's resources. This demands altering
traditional relationships to a shared tradition without regard to
organisational boundaries. The relationship is based upon trust,
dedication to typical goals, and an comprehending of every other's
person expectations and values (Barlow et al. 1997). To date, joint
venture is understood like a set of collaborative processes, which
emphasizes the significance of typical objectives. The base of
joint enterprise is a high degree of interorganisational trust and
the presence of mutually beneficial objectives. Joint enterprise
indicates a management process that helps the strategic preparing
to improve the effectiveness with the enterprises, and forms a team
with typical objectives (Barlow et al. 1997). Participants of the
undertaking can improve performance in terms of price, time, quality,
construct ability, fitness-to-purpose, and a entire of array of
other requirements, if they adopt much more collaborative ways of
operating (Bresnen and Marshall 2000). Barlow et al. (1997) mentions
six effective elements of joint enterprise: building believe in,
teambuilding, the need for leading level commitment, the significance
of individuals, the strategic motion of key personnel, and the require
for open up and flexible communications. The same authors quote as
typical advantages in a joint enterprise relation: reduced costs,
shortened delivery time, enhancement in building high quality, much
better working atmosphere, and organisational studying. Joint venture
classifications focus on the duration of cooperation in between
partners. This dissertation will be used as a case study to discover
the extent and native of those benefits in practice.
Two main kinds of joint venture are discovered in literature:
project joint venture and strategic joint venture or long-term
joint enterprise. Undertaking joint enterprise is a cooperative
partnership between organisations for that duration of a specific
project (Barlow et al. 1997). In the finish of the undertaking, the
partnership is terminated and an additional joint enterprise might
commence around the next project (Kumaraswamy and Matthews 2000).
Welling and Kamann (2001) state that if these firms do not meet again
in an additional undertaking, the learning impact reached around the
particular undertaking will probably be eradicated. Strategic joint
enterprise is a relationship with a high degree of cooperation between
companions (Barlow et al. 1997), which takes location when two or
even more firms use joint venture on the long-term basis to undertake
more than 1 construction undertaking, or some continuing activity
(Kumaraswamy and Matthews 2000). In this type of joint venture, the
learning accomplished in a specific undertaking is more prone to be
used in long term projects. Within the context of the strategic joint
enterprise, it becomes a management philosophy that is expected to
function continuously for every and every undertaking and there are
more expectations from group members than to get a undertaking joint
venture (Cheng and Li 2001). The type of TNC JV will be the strategic
joint venture where Thai and Japanese Companion are focusing around
the long term goal.
2.two Seeing Joint Ventures as a Foreign Marketplace Entry and
Development Strategy
3. Joint ventures are sometimes viewed like a second (or perhaps 3rd)
very best option for supplying a foreign market-bemng utilized only
when fedezal gover�ment regulations (�.g. owne�ship and exr�rt
controls, l�mitations on royalty repayments, etc.) prevent the
establishment on wholly owned �ubsidiaries, exports, or lmcensing.
Cestiinly, there are main issues uhat come ux within the �lanning,
negotiation, ant adminis�ration o� worldwide joint ve�turms. In
sxite of this kind of difficulties, it's broedly rgcognysed �n
the�literature that you will find imporvant stretegic and aggressive
advantages tha� mcy be derived from successful joint v�nture
agseements, qnd such!collaboratyon m�y bm cons�dered a initya�
option in particular conditions 8Kenichi Ohmce, 1985). Connolly
(1984), for example, a�gued that txe property of developed-country
mu�tinctyonal en|��prise� (ooney, forei�n$gychange, technology<
management� and �arketi�g abinities, etc.) and developing-gountry!
companie� (|ower costs, greqter familiarity with!nearby!markets,"and
so on.)�are comple�entar{, cod(that vhe2�ixture �f thgs� assevs0in
a joint ventur� resumts in0mutual!idvantages. This�can��e(noticed
withi~ the0case of TNC.$Equall{, C�n�ractor (�984) argued the loss
of control and the s|aring!og xrofits inhmr�nt�in1equity joint!
ve~tures0is�more than compen�ated for from ti� knowledgm and
capital�contrijution!wyth tle n�asby"companion; sonticts with
g�vernment off�cia�s: fastev entry in�o(the�markev;`a~d fanger
redu�tion. Harrkgin (1984, 198�) arguel that0koint ventures should
not be(sden |ike a hidino"place ov i signal �f weaknuss. I�stead, if
organyzee rroperl�joint*vm�tu�es would$ce a
source(of0a�grewsive"edvao|awe��a indicate� of defendi�g existing
strategmc$xowitions in �rposition)to forcus t�o strong for 9 firm$to
withstand by itself or like a indicates of(implem�nting
m�eifigations"in stzategic postures (e.g� diversification iccess uo
techoolooy)/ Ko�nt venturmw permit every kompanyon to focus0their!
resources in loketions of expertmse, w�i|st enabling diver�ificatyon
into �t|ractyve but unfamiliar�business creas.!Genesal, Jarrigan
(1�84, 1985) concludes that joint vm~tures*are importint stretegic
weapon in re{ponding towirds the cha|lenges of global competytion.
two.thr�e Facto��for forming the IJV
The partners (Thai and Japanese) may have sha�ed interests�in!forming an IJV which give
both opportunities to
five proluse greater market power by combining sources;(Bell,�1996)0
6 reduce r�sk by sharing costs (expens�s of expense and production
are shared);
seven reap econommes of scale;
8 cooperave"and steer slear of competition , which might`inc}r greater costs0than �hose
incurred by agreeing towmr�w the IJV (the IJV os defin�te|y an ill�a~cg that restry�ts!
4. your(personal catabmlmty for indepgndent action,"jut qdditionally�restricts th�t0of yowr
com��nion); (�ont�actor & Lovangel 1988).<�{pan>
In general, though, most IJVs offer mother and father various opportunities which arise from
their different environments. A project might offer the foreign mother or father access to a
local market, and the local mother or father use of the international marketplace. According to
(thailandoutlook.com), in 1997 two securities companies, the Premier Group of Thailand and
SBC Warburg, shaped a joint enterprise designed to provide Warburg with local knowledge and
Premier with worldwide entry.
Furthermore, the foreign mother or father needs to meet the host
government's requirements for doing business within the nation (in
this case the Thai Government). For instance, a foreign company
is only permitted to operate within the country if ownership is
shared having a nearby company. The IJV offers the foreign parent
opportunities to learn about local marketing conditions and to gain
access to nearby resources, including manufacturing amenities, labour,
and materials. For the local mother or father these are possibilities
to generate upstream and downstream industries. For instance, the
improvement of an IJV pulp mill encourages nearby entrepreneurs to
increase logging facilities and to invest in paper manufacture. The
nearby government advantages by possibilities to encourage foreign
expense. Also, the foreign parent may be allowed to consider only
minority ownership, and must fulfil conditions regarding local
employment, technology transfer, purchase of nearby materials, etc
(Chowdhury, 1992).
two.four Factors influencing IJV success and failure
The greater that the business depends upon the strategic alliance
in order to achieve its strategic goal, the more it invests in the
success with the alliance. In the situation of TNCJV this indicates
investing to find the ideal partner. Finding the ideal companion takes
time and effort, and the higher the significance the company gives to
this selection procedure, the greater the chances of success (Geringer
1991).
Hung's (1992) research of Canadian businesses operating in South-East
Asia discovered that "the most often mentioned difficulty is to get
the right companion company, 1 which has compatible objectives and is
trustworthy". Therefore, trust is one with the most important parts of
forming the IJV. Believe in factors then will be reviewed:
2.4.1 Trust between the parents
The project is much more likely to succeed when each parent trusts
that the other is genuinely committed to the project and will do its
very best to abide by all agreements between them (Demirbag & Mirza,
2000).
When more companions believe in each other, the easier they find it to
reach agreement on internal preparations:
1 applying the same strategic priorities to planning;
2 management style, and systems;
3 systems for communicating in between the parents, the IJV, and
mother and father; within the IJV; and with the environment
four factors associated with company passions, objectives, impact of
size, timescale
5 assessments of IJV success and failure: project evaluation, both
5. ongoing and on termination.
(Demirbag & Mirza, 2000)
2.four.2 Mistrust in between mother and father, and also the
environment
Mistrust arises from
13 inadequate preparing;
14 communication issues in between parents (Thai and Japanese within
this situation)
15 wide differences in the national and organisational cultures of the
parents;
16 1 parent altering its attitude towards the project in response to
�ts personal internal changes � e.g., a brand new technique,$a new
CEO;
17 1 mother�or father amtering its attitude to the undertaking in
response to changes in its company environment.
To take the final point: b�th mother and father operate �n their personal
volatile �ompany e�~ivo�ment. Their n�qrb� masket� and(�ompetitors
differ>0T�ey are subject to divf�r�nt loc�� political, social, and eco�omic
pressur�s. These environmental dif�evences make any alliance inherently
un�tablm (Geringer, 198x).
�span>These elements�of environmental uncertainty may be the reason for focusing onn} on
short-term alliances with highly particulir goals. The partners may use an initial limited alliance in
order to test the possibilities to gmt a greater commitment and to construct believe in (Harrigan,
1985).(This also has implications for communicatmon. Each partner �eeds to communicate
informition about its own en~ironment and to dgvelop knowledge with th� other's.
2.four.three Believe in within the project
A project succeeds when undertaking staff trusts each other and
when persons posted from the two mother and father develop a
synergetic relationship. Before undertaking operations start, a shared
undertaking culture is fostered by mixing staff from the mother and
father in groups, where they work collectively on project planning.
They exchange non-critical technological and company data (Harrigan,
1985).
A lack of believe in arises when
18 staff join the project ignorant with the needs and passions of
their colleagues from the other mother or father;
19 local staff feel threatened by a stronger foreign mother or father;
20 conflict come up from human resource and technology transfer
policies (1 mother or father cannot supply the skills to which it is
committed);
21 cultural differences are exploited.
2.4.four Trust between the project staff and their parent
A undertaking succeeds when staff posted to it feels confident with
the support of their headquarters. Mistrust arises when promised
support fails to materialize, or staff feel that their long-term
career prospects with the company are in jeopardy. A project is also
undermined when top administration fails to communicate its goal
effectively within the organisation. Subordinate levels perceive it
6. like a drain on their sources, and give it a minimum of attention
(Kachara & Hebert, 1999).
two.four.5 Similar business passions
The potential partners are much more prone to function together
effectively when they have related passions. The mother and father
of effective IJVs have similar passions and belong to similar or
complementary sectors. When both contribute and learn from the
other, fruitful cooperation is possible. Businesses within the same
business form alliances when they hope to benefit from discrepancies
in technology, systems, and markets (Kogut, 1988). By 1993, joint
ventures parented by the Swiss food firm, Nestle, included alliances
with Coca Cola (canned coffee and tea drinks), General mills
(cereals), and two companies in the people's Republic of China (a
coffee and creamer plant, an infant formula and milk powder plant).
2.4.six Compatibility in size
Incompatibility in the size with the parents is important when one
uses its greater sources to dominate the project in its own passions
alone. However, the improvement of company by Internet and other
electronic media indicates the company can expand (and agreement)
in a very short time, and also the size of staffing complements and
physical resources is no longer an accurate guide to some firm's
financial and knowledge power (Kachra & Hebert, 1999).
The research of the foreign direct expense in Japan discovered the
attitude taken by the Japanese bureaucracy was influenced by this kind
of elements because the investor's care for its partnership with the
federal government, the profitability of the IJV, the foreign parent's
commitment, timing and location, and technology transfer issues.
However, "the size with the investor does not seem to matter much"
(Thawley, 1996).
2.four.seven Compatibility in timescale
The mother and father require to share a timescale. Suppose that
Mother and father A and B are both prepared to invest in five years'
development expenses. The project is set fair. But contradictions come
up when Mother or father A aims at reinvesting profits made during
the initial period whereas Parent B wants a quick return from its
investments (Li, 1995).
2.five Culture influencing IJV success and failure
2.5.1 Cultural dimensions by Hofstede
Cultural distance between companions and its impact on IJV performance
has so far been the most commonly reviewed variable. The distance
has usually been expressed multi-dimensionally (based on Hofstedé
(1980) four cultural dimensions and an index created by Kogut and
Singh (1988)). Cultural similarity decreases issues caused by
cultural issues (e.g. different norms of behaviour and productivity,
measurement and goals related to efficiency) and should facilitate
believe in and cooperation between partners. Barkema and Vermeulen
(1997) tried to analyse in much more detail the impact of tradition
on IJV performance. Utilizing the five different cultural dimensions
by Hofstede - power distance, uncertainty avoidance, individualism,
masculinity, and long-term orientation - the authors anticipated
that there would be differences in the impact of various dimensions.
Differences in uncertainty avoidance are difficult to cope with
7. because they imply differences in how people perceive opportunities
and threats in their environment and how they act on them (Schneider
& Meyer, 1991). In substantial uncertainty avoidance countries
organisations tend to respond to uncertainty by creating up a system
of high formalization and hierarchy. In low uncertainty avoidance
nations people are much more attracted to versatile, ad hoc structures
that leave much more room for improvisation and negotiation.
Differences in uncertainty avoidance lead to differences in how
partners perceive and respond to events within the environment with
the IJV, which will likely breed disagreement and disputes between
the companions, and have a detrimental impact on the IJVs efficiency.
Power distance and individualism directly bear on issues of internal
integration and influence relationships with personnel, such as the
choice of control types, reward systems. Administration of personnel
is usually 1 of the initial activities to become left to the local
partner. There can also be evidence that MNCs do not transfer cultural
values related to power distance and individualism to their foreign
subsidiaries (Soeters & Schreuder, 1988). Thus tensions between
the companions with differences along these dimensions might be
avoided. Shenkar and Zeira (1992) suggest that having partners from
both "feminine" and "masculine" cultures might even advantage the IJV.
The aggressive attitude of one companion and also the partnership
orientation of the other may complement every other instead than
collide. The above discussion suggests that differences in uncertainty
avoidance would be more important than the other three dimensions.
The empirical results by Barkema and Vermeulen (1997) supported the
expectations: uncertainty avoidance and long-term orientation had
higher differential negative impact on IJV survival than masculinity,
whilst the two other dimensions (individualism and energy distance)
had no impact. What concerns the Asian context it may be said that
all potential Asian cultures have rather similar cultural profile.
This profile includes rather few layers of decision-making, much
more danger taking, greater group emphasis, and higher concern for
relationships (Swierczek & Hirsch, 1994). This can be applied to TNC
where Thai and Japanese tradition share some similarities.
One tradition can influence how willing 1 is to trust a possible joint
enterprise companion. When it comes to tradition, the Japanese tend
to become somewhat introverted in their ways. They generally are not
receptive to outsiders. When conducting business with Japanese, it's
essential to note that relationships and loyalty towards the group is
critical for success.
(http://www.geert-hofstede.com/hofstede_japan.shtml)
According to Hofsted Cultural Dimension Scores, the score of Japan
is dramatically different from other Asian Countries. Masculinity in
Japan will be the highest characteristic. The lowest ranking factor is
Individualism, which coincides with their high ranking in Uncertainty
Avoidance. Japan is a much more collectivist tradition that avoids
risks and shows little value for personal freedom.
(http://www.geert-hofstede.com/hofstede_thailand.shtml)
In contrast, Thailand's lowest Dimension is Individualism (IDV). A
low score, as Thailand has, indicates the society is Collectivist
as compared to Individualist which this score is even lower than
8. Japanese. It may be said that this is manifest in a close long-term
dedication to the member 'group', is that a family, extended family,
or extended relationships. Furthermore, the primary different category
compared to Japanese Dimension is Masculinity which ranks the lowest
among the Asian Nations. This lower degree is indicative of a society
with less assertiveness and competitiveness, as compared to 1 where
these values are considered more essential and significant. This
situation also reinforces more traditional male and female roles
within the population.
two.five.2 Compatibility between national cultures
Ones culture also influences ones perception of the environmental
elements discussed above; whether your company interests are similar
(or in conflict), whether your objectives are complementary, whether
differences in size are essential, what timescale should apply. In
theory, partners are more prone to agree on these points when cultures
are compatible. That is, joint ventures shaped by parents of similar
cultures stands a greater chance of succeeding than these primarily
based on between dissimilar cultures (Wille, 1988).
two.five.three Different organisational cultures
If the organisational cultures of the two mother and father vary
broadly, a effective alliance may not be possible. However, this is
not always the case. Within the situation of TNC, the organisational
tradition of mother or father can be advantagous because the
understanding of National Culture also affects the performance.
When talks designed to lead to strategic alliance between Mitsubishi
of Japan and Daimler-Benz of Germany broke down, the following report
was made:
"Analysts say the match has been strained from the beginning because
the companies have fundamentally different structures. Daimler-Benz,
a much smaller company than Mitsubishi, has traditionally had a close
knit management structure that has tended to set out clear strategic
objectives and forge ahead. Mitsubishi, an amorphous conglomerate of
several large businesses, has moved much much more cautiously with
internal factions often disagreeing over broader policy." (Yamawaki,
1995).
The companies were unable to overcome differences in their strategies,
structures, and organisational cultures.
Staff posted towards the undertaking from the two parents is much
more prone to work well together when their organisational cultures
are similar. This does not mean that they ought to be identical -
an impossible condition. Instead, there must be considered a sense
of comfort about how the other does the business, a willingness to
work collectively and learn, and needs for shared solutions (Fedor &
Werther, 1997).
two.five.four How the IJV affects the parent organisational cultures
Parenting an IJV undertaking can influence the tradition with
the mother or father headquarters by creating new spirit
of "internationalism." This is ADVANTAGOUS when headquarters staff
advantage from an influx of new ideas and technologies, and develop
new knowledge with the possibilities offered I the environment.
It's DISADVANTAGOUS when the outflow of staff towards the IJV (and
inflow of replacements) impairs internal cohesion. A positive culture
9. is weakened when staff feels pressured by responsibilities for which
they have no training and experience. Supporters with the project are
isolated. Planning and operating the IJV influences the organisational
culture of the mother or father headquarters. In order to respond
to issues and opportunities arising from parenting the undertaking,
headquarters streamlines and reorganizes its structures (Siddall et
al., 1992).
two.six Motivational Perspectives in between Thai and Japanese
One's motives are major determinants of one's behaviour. If the
company can understand the employee's motives, they can influence
their employee's behaviour. To motivate others is one with the
most essential administration tasks. It comprises the abilities
to understand what drives people, to communicate, to involve, to
challenge, to encourage, to set an instance, to develop and coach,
to obtain feedback, and to provide a just reward. According to
(Find Ref), "Motivation is about cultivating your human capital.
The challenge lies not it the function by itself, but in you, the
person who creates and manages the function environment." However, to
motivate people in different culture might be difficult if the level
of motivation is not exactly the same. Ref describes how different
tradition may be perceived differently. Scandinavian cultures (Sweden,
Norway, Finland, and Denmark) location a substantial value on quality
of lifestyle and social needs. European and Anglo-American cultures
location a substantial value on productivity, efficiency, and
individual self-actualisation. Chinese tradition values collectivism
and community activity higher than individualism (Exact same Ref).
According to Maslow's hierarchy of needs, he theorised that people
have successive layers of needs, and that as every lower layer is
satisfied, then the person moves on towards the subsequent layer up.
The following diagram will explain how the model works:
(Maslow's hierarchy of needs model from Maslow, 1943)
The lowest layer is that of physiological needs. It is the require
to eat, sleep, stay warm, use the bathroom, etc. The second layer is
safety (the need to have physical and psychological security, such as
wanting the presence of law and keeping a job). The 3rd layer is that
of love and belonging (being the require to be part of the family,
group, or gang). Some would say that this 3rd layer is very much a
Japanese domain, where belonging to some group seems to take priority
over the achievement of higher layers. According to (Japanese Ref),
he raises the question that "How many times have you noticed very
capable people like Japanese deny themselves a fuller career due to
their desire to stay with some smaller business on the foundation that
it's their 'family?'" The Japanese always put the top priority to
their business. The fourth layer is that of self esteem and status.
This is exactly where high-achievers dwell, and therefore are able
to distinguish themselves commercially and professionally. The fifth
layer is "Actualization." According to Wikipedia.com, it gives the
following description (extract): "Self actualized people embrace the
facts and realities of the world rather than denying or avoiding them.
They are spontaneous in their ideas and actions. They are creative.
They are interested in solving problems, which often includes the
problems of others."
10. The interesting point to make here's whether Thai and Japanese have
exactly the same level in Maslow's hierarchy of needs. At TNC,
different level of needs might bring the conflict in interactive
situations, for instance, between Japanese employer and Thai employee,
the model might require to be adopted in its applications amongst
differing cultures. Even though the tradition of Thailand and Japan
might be similar, it does not mean that they would have the same
desire or expectation.
Primarily based around the literature review, the definition of
IJV, and reasons for forming the JV have been illustrated. Factors
including cultural differences between Thai and Japanese, and various
motivational perspectives were explained. However, it's essential and
vital to discover how these factors affect TNC employees primarily
based on their perception. In Chapter four, findings and analysis from
the interview will probably be examined.
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