International joint venture strategies and performance in the Baltic States

Abstract

Purpose – The purpose of this paper is to analyse investment strategies and performance of Finnish firms in their international joint ventures (IJVs) established in Baltic States. Design/methodology/approach – The paper analyse performance of IJVs in Baltic States based on the IJV theory, international business literature, and foreign direct investments in Central and Eastern Europe (CEE) literature. The analysed factors include firm, investment, and inter-partner relationship-specific factors. To examine the propositions the paper used ten IJVs established by Finnish firms in various Baltic States between the period 1991 and 2005. Findings – The results show that the level of uncertainties in the countries and the differences between partners are not related to firms’ commitments and the entry mode choice. Several Finnish firms preferred cost leadership to compete with other firms in the local markets. In most cases there was a positive relationship between the level of partners’ equity share, commitment to the IJV, and the level of trust between partners. The results indicated differences in the IJV performance depending on parent firms’ objectives, their competitive strategies, mode of entry, age of IJVs, control strategies, level of trust, and commitment between partners, as well as depending on the performance measures used. Practical implications – This study suggests four observations that managers may need to take into consideration to improve IJV performance in the Baltic States. First, cost leadership strategy help to increase IJV performance in terms of sales. Second, social control mechanisms and narrow control leaded to better performance than formal and wide control. Third, minority ownership by Finnish firms in IJVs leaded to better performance based on sales, productivity and total performance whereas majority ownership had leaded to better performance in terms of total costs. Finally, the results confirmed that commitment to the IJV operation and trust on the other partner are very essential factors to IJV performance. Originality/value – The study is the first one to analyse in more detail based on several cases the IJV strategies and performance of Finnish firms in the Baltic States. The analysed factors include several such factors which have not been analysed related to IJV operations in Baltic States (some also limitedly in the CEE context).

The Relationship Between Product Diversificaton in Local Markets and Internationalization Degree: The Moderating Effects of Corporate Governance Mechanisms

“…ÇalıĢmanın bağımlı değiĢkenini oluĢturan uluslararası çeĢitlenme düzeyinin hesaplanabilmesi için örnekleme dâhil edilecek iĢletmelerin en az bir adet azınlık paya dayalı ortak giriĢim veya daha yüksek sahiplik payına sahip olduğu doğrudan yabancı yatırımının bulunması gerekmektedir. Bu noktada portföy yatırımı olarak adlandırılan yani %10'dan daha az sahiplik payını ifade eden (Ġlhan-Nas, 2012; Kaynak ve diğerleri, 2007;Larimo, 2003;Tatoğlu ve Glaister, 1998;Ramu, 1997) yatırımlar dıĢında en az bir adet doğrudan yabancı yatırımı bulunan iĢletmeler örnekleme dahil edilmiĢtir. Örneklem seçilirken ayrıca, farklı finansal raporlama standartlarına sahip olmaları nedeniyle bankalar ve finansal kuruluĢlar örneklem dıĢında bırakılmıĢtır.…”

Uluslararası Ortak Girişimlerin Başarısında Kültürel Uyumun Etkisinin İncelenmesi

“…Ayrıca, karakteristikleri ve problemleri sebebiyle de UOG projelerinin başarısını en çok etkileyen faktörün yönetim uzmanlığı olduğunu belirtmişlerdir. Larimo ve Nyugen [12], Fin firmaların, Baltık ülkelerinde kurdukları UOG'lerin performanslarını ve yatırım stratejilerini analiz ettikleri araştırmasında, UOG performanslarındaki farklılıkların ortakların hedefleri, rekabet stratejileri, ortaklığa giriş biçimleri, girişimin yaşı, kontrol stratejileri, güven seviyeleri ve ortaklar arasındaki bağlılık seviyelerinden kaynaklandığını ortaya çıkarmıştır.…”

“…Üçüncü zorluk tam ve geçerli bir performans göstergeleri listesinin oluşturulması ve bu göstergeler arasındaki ilişkilerin tanımlanmasının zorluğu olmuştur. UOG performansını etkileyen birçok potansiyel faktör literatürde sunulmaktadır [11,12,13]. İnşaat sektöründe, performans ölçümü ve yönetimine dair çalışmalar [14,15] proje veya şirket performansının ölçülmesi gerektiğine dair bir çerçeve çizilmesinin gerekliliğini vurgulamaktadır.…”

Factors Influencing Performance Management of Non-Equity Joint Ventures in the Oil Sector

“…The argument is, although the transaction cost theory helps in forming the understanding of joint ventures, it promotes the misalignment of the involved parties in managing the organisation, which leads to negative performance outcomes (Johansson, 2015). In other words, the transaction cost theory does not suggest the drivers or the criteria responsible for a successful operation and performance of a joint venture (Gomes-Casseres, 1989;Hill, Hwang and Kim, 1990;Hersch and Styles, 2001;Katsioloudes and Isichenko, 2007;Lowen and Pope, 2008;Vaidya, 2009;Bener and Glaister, 2010;Larimo andNguyen, 2015, Johanson, 2015). Hence, the focus of this thesis is to identify the factors that influence the performance of petroleum joint ventures in Egypt.…”

“…These dynamics include the influence of the economic, legal, political and social environment on the joint venture (Ying, 1996). The economic, legal, political and social frameworks that influence joint ventures are country-specific and therefore, the context of each joint venture should be studied separately (Gomes-Casseres, 1989;Hill et al, 1990;Hersch and Styles, 2001;Katsioloudes and Isichenko, 2007;Lowen and Pope, 2008;Vaidya, 2009;Bener and Glaister, 2010;Larimo and Nguyen, 2015).…”