Causes for Joint Venture Failure

 

Common Reasons for Joint Venture Difficulties

 

Hewitt

Cultures

  

 

 

Research indicates that 50 to 70% of all joint ventures fail. Not many CEOs of joint ventures characterized their venture as "very successful".

Below are some common reasons for joint venture difficulties.

 

▪ The philosophy governing expectations and objectives of the joint venture is unclear  >>>

There's an imbalance in the level of investment and expertise brought to the JV by the two parent organizations  >>>

The senior leadership and management teams for the JV receive inadequate identification, support, and compensation  >>>

The joint venture partners possess disparate, and often conflicting corporate cultures and operational styles  >>>   >>>

The joint venture's size is modest compared to the two parent organizations  >>>

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