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

The most common causes of joint venture failure are ❶ Cultural differences; Poor or unclear leadership, and ❸ Poor integration process... More

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 operating policies, strategies, and tactics in the local market.

Differences in the approach of each partner towards management style (decision-making, communication, delegation, and so on) and systems (performance management, accounting, control, and so on)