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Strategic management of international joint ventures

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  • Zahra, Shaker
  • Elhagrasey, Galal

Abstract

Today, international joint ventures (IJVs) are widely acknowledged as a viable strategic option. Unfortunately, IJVs have an estimated 60 per cent rate of failure. Shaker Zahra and Galal Elhagrasey suggest that executives can reduce this high failure rate by determining the need for the venture; by carefully selecting compatible IJV partners; by patiently and thoroughly negotiating the purpose, form, scope, duration, and administrative structure of the venture; and by managing problems as they occur during the course of the IJV project. This article provides a step-by-step model of these issues, highlighting potential problems executives may face and how they can address them.

Suggested Citation

  • Zahra, Shaker & Elhagrasey, Galal, 1994. "Strategic management of international joint ventures," European Management Journal, Elsevier, vol. 12(1), pages 83-93, March.
    • Handle: RePEc:eee:eurman:v:12:y:1994:i:1:p:83-93
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    Cited by:

    1. Banerji, Kunal & Sambharya, Rakesh B., 1998. "Effect of network organization on alliance formation: A study of the Japanese automobile ancillary industry," Journal of International Management, Elsevier, vol. 4(1), pages 41-57, July.
    2. Demirbag, Mehmet & Mirza, Hafiz, 2000. "Factors affecting international joint venture success: an empirical analysis of foreign-local partner relationships and performance in joint ventures in Turkey," International Business Review, Elsevier, vol. 9(1), pages 1-35, February.

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