Joint Venture Conflict: The Case of Thai International Joint Ventures

Abstract

International Joint Ventures (IJVs) have become an important means of market entry for many firms, particularly those seeking entry into Asia (Lin and Germain, 1999).As such, it is important to understand what causes some IJVs to fail and others to succeed. This study examines the relationship between partners' needs, commitment, control and conflict between the IJV partners in a developing country of South East Asia. The findings revealed that IJV inter-party conflict was significantly influenced by all three variables, namely, partners' needs, commitment and control thereby providing support for previous research in a different national setting.

The Consequence of Partner Relationship Quality to Predict the Successful Performance of Small and Medium Enterprises (Smes) International Joint Ventures (Ijvs) in Thailand Industrial Sectors

“…IJV managing directors (MD) or general managers (GM) who are the representative of SME IJV (either local or foreign partner) operating in Thailand was targeted as the key information person in this study. This is because he/she is the key person who knows about IJV management and is considered as information gatekeepers (Julian, 2010(Julian, :2008Julian &O'Cass, 2005. Previous research provides a support for relying on the IJV general manager for reliable data (Geringer & Hebert, 1991;Child, Yan & Lu 1997).…”

Determinants of Success of Australian-Malaysian Joint Ventures: A Preliminary Analysis

“…There are numerous studies that address conflicts between different cultures, traditions, as well as value systems, but only few of them focus on identifying the key factors and their managerial implications foreign investors need to successfully enter emerging markets such as Malaysia. More importantly, IJVs have become an important means of market entry for many firms, particularly those seeking entry into Asia (Julian, 2008). By identifying key success factors, it will be possible for the Australian partners in IJVs to incorporate those factors into firms' longterm business strategies and policies, and, therefore, enhance their business opportunities in the future.…”

Managing Conflicts in Joint Venture Projects

“…However, Julian (2008) argues that a small amount of conflict may be healthy for the joint venture since it may force management to evaluate their decisions more carefully. The existence of conflict requires managers to spend valuable time and effort in resolving or managing the conflict, preventing this time from being spent in more productive ways (Julian, 2008;Omiko & Rout, 2007). Organisations have to deal with conflict all the time (Mansor, 1998) as conflicts may hint towards a potentially serious situation in the organisation that needs attention (Omiko & Rout, 2007).…”

“…The IJV phenomenon is becoming increasingly popular (Adnan, 2008;Julian, 2008;) as it allows participating companies to rapidly change the scale or scope of their business both in multinational construction firms and local government in order to achieve their JV objectives. Furthermore, Adnan (2008) stated that JV is established to take advantage of the economic, political and social conditions prevailing in a particular economy.…”

“…Conflict may result in the unwillingness of parent firms to contribute resources that the IJV needs to achieve its goals (Julian, 2008). Based on a study conducted by Ding (1997), conflicts between IJV partners significantly reduce IJV performance, thus, it is suggested that the partners need to formulate an effective conflict management strategy for IJV success in which managing conflicts in JV can be in various methods.…”