Determinants of international joint venture stability : a case study of multinational telecommunications company with dynamic, process-oriented approach

Pao Yue-kong Library Electronic Theses Database

Determinants of international joint venture stability : a case study of multinational telecommunications company with dynamic, process-oriented approach

 

Author: Hui, Sau-han
Title: Determinants of international joint venture stability : a case study of multinational telecommunications company with dynamic, process-oriented approach
Year: 2004
Subject: Hong Kong Polytechnic University -- Dissertations
Joint-ventures -- Case studies
Telecommunication -- Management
Department: Graduate School of Business
Pages: 67 leaves : ill. ; 30 cm
Language: English
InnoPac Record: http://library.polyu.edu.hk/record=b1781582
URI: http://theses.lib.polyu.edu.hk/handle/200/2831
Abstract: In this paper, the determinants of international joint venture (IJV) stability are investigated through the study of an IJV in telecommunications industry. Here, it is proposed that IJV stability is related to the level of inter-partner relational quality, cultural difference between parents, the IJV's ability to anticipate environmental change and industrial dynamics and a change in parent's strategy and objectives for the IJV. Survey data was collected using questionnaires, which were distributed to the people working in or with the IJV. The results show that the stability of the IJV studied is strongly correlated with the quality of the pre-formation plan, IJV's ability to encounter environmental changes, as well as the direction of parent's strategy. However, the relationship between cultural fit and IJV stability in this study is weak. In addition, it was also an objective of this research to study IJV stability by taking a process perspective in which the significance of determinants in affecting the IJV stability is examined during different stages. IJV does not dissolve overnight, but rather through a gradual deterioration process. This makes it interesting to understand how these determinants will affect the IJV stability in a continual manner. Result of this study found that only 2 factors have played a major role in impacting the IJV stability. These are the redirection of parent's focus on the IJV and a change in the relative bargaining powers between parents. Lastly, implications and the recommendations of creating a successful joint venture are discussed, as well as the limitations of this study and some suggestions about the appropriate direction for future research.

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