Resolving post-formation challenges in shared IJVs: The impact of shared IJV structure on inter-partner relationships

OWENS, Martin, RAMSEY, Elaine and LOANE, Sharon (2018). Resolving post-formation challenges in shared IJVs: The impact of shared IJV structure on inter-partner relationships. International Business Review, 27 (3), 584-593.

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    The “50/50”, or the shared management international joint venture (shared IJV) remains a popular and yet challenging control structure to govern IJVs. The purpose of this study is to understand the post-formation management of shared IJVs, specifically the relationship between shared structure, relational conditions and management of post-formation challenges. Our evidence is based on 26 in-depth interviews across four cases of shared IJVs between British multinationals and Asian companies. Our findings indicate that the highly integrative nature of shared IJVs, including high operational interdependence and shared decision-making, encourages partners to work closely together, communicate frequently and intensely and exchange personnel. Although share management can lead to inter-partner conflicts, the equal investment and mutual responsibility partly provides partners with motivation and opportunities to learn about each other, to better implement the control structure, to build trust, and to commit to the venture and partner. These relational conditions facilitated the successful management of post-formation challenges such as diversity related conflicts and macro volatility.

    Item Type: Article
    Uncontrolled Keywords: 1503 Business And Management; 1505 Marketing; Business & Management
    Identification Number:
    Page Range: 584-593
    SWORD Depositor: Symplectic Elements
    Depositing User: Symplectic Elements
    Date Deposited: 15 Nov 2018 16:07
    Last Modified: 18 Mar 2021 05:16

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