Research indicates that 50 to 70% of all
joint ventures fail. Not many CEOs of joint ventures
characterized their venture as "very successful".
common causes of
failure are ❶
❷ Poor or unclear
leadership, and ❸
Poor integration process...
Below are some factors that contribute to the
poor track record of international joint ventures:
▪ Conflict over delegation of
decision-making to the local joint venture management by a foreign
partner which sees the JV operations as only a small part of the
global picture and is trying to maximize profits globally, while the
local partner is trying to maximize profits locally.
▪ Disagreement between the partners over
and tactics in the local market.
▪ Differences in the approach of each
delegation, and so on) and systems (performance
accounting, control, and so on)