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

And why is the Performance of International Joint Ventures important both for Foreign Direct Investment and international Trade Flows?

Seminararbeit , 2008 , 22 Seiten , Note: 2,0

BWL - Sonstiges

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 investigates the key factors that determine the success or failure of international joint ventures (IJVs). It explores the role of both internal and external factors, including partner attributes, trust, governance, leadership, country-specific conditions, and industry dynamics, in shaping IJV performance. The paper also examines the connection between IJV performance and foreign direct investment (FDI) and international trade flows, analyzing the potential for both positive and negative correlations.

• Understanding the factors that contribute to IJV success or failure
• Analyzing the influence of internal and external environmental factors on IJV performance
• Exploring the relationship between IJV performance and FDI
• Investigating the connection between IJV performance and international trade flows
• Examining the complexities and potential for diverse outcomes in the relationship between IJV performance and both FDI and international trade flows

Zusammenfassung der Kapitel (Chapter Summaries)

The first chapter introduces the concept of international joint ventures, outlining their significance in the context of globalization and international collaboration. It defines the term and situates it within a framework of various market entry strategies. Chapter 2 delves into the key factors that influence the success or failure of IJVs. It explores internal factors such as partner attributes, trust, governance, and leadership, as well as external factors such as country-specific conditions and industry dynamics. This chapter also includes a comparison of the relative importance of these factors and provides two case studies to illustrate their real-world application. Chapter 3 examines the relationship between IJVs and FDI, while Chapter 4 investigates the connection between IJVs and international trade flows. The paper concludes with a critical assessment and summary of the key findings.

Schlüsselwörter (Keywords)

International Joint Ventures, success, failure, performance, partner attributes, trust, governance, leadership, country-specific conditions, industry dynamics, foreign direct investment (FDI), international trade flows, collaboration, globalization, market entry strategies.

• Hochschule: Zeppelin University Friedrichshafen
• Veranstaltung: International Economics
• Note: 2,0
• Autor: Isabella Aberle (Autor:in)
• Erscheinungsjahr: 2008
• Seiten: 22
• Katalognummer: V142226
• ISBN (eBook): 9783640514458
• ISBN (Buch): 9783640512584
• Sprache: Englisch
• Schlagworte: International Joint Venture, IJV, Cooperation, Trade Flow, Foreign Direct Investment, international, Globalisation, Performance