Managing Partnerships with State-Owned Joint Venture Companies: Experiences from Vietnam

Nguyen, Ha; Meyer, Klaus E.

doi:10.1111/j.0955-6419.2004.00299.x

Cited by 20 publications

(8 citation statements)

References 1 publication

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“…Table 3 highlights the risks related to four types of equity modes of entry: wholly-owned greenfields, full acquisitions, newly established JV and partial acquisition. Newly established JVs suffer less from investments risk due to lower capital commitment, and normally no postestablishment integration risk (unless parts of an existing operation are moved to the new operation, as was common in Vietnam as certain times, Nguyen and Meyer, 2004). However, they are highly exposed to coordination risk and hence more likely to miss emergent market opportunities because they are too slow to react.…”

Section: Jvs Do Not Enhance Flexibilitymentioning

confidence: 99%

Transaction cost perspectives on alliances and joint ventures: explanatory power and empirical limitations

Meyer

Wang²

2015

Handbook on International Alliance and Network Research

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Transaction cost economics (TCE) has been extensively applied by international business scholars to analyze joint ventures and strategic alliances. It provides a theoretical basis to analyze how firms organize their transactions with other firms, and hence their choices of governance structures, for example between JVs and other organizational forms. However, TCE has also been frequently critiqued and empirical findings on some of the constructs derived from TCE find inconsistent results. This chapter critically evaluates the TCE literature on cross-border business activity to evaluate to what extent this empirical literature actually allows to support or refute TCE-based arguments, and to provide directions for future work research. We identify four major challenges: 1) The level of analysis used to proxy transaction costs, 2) contextual drivers of transaction costs, especially in emerging economies, 3) theoretical ambiguity of TCE arguments with respect to distance and experience, and 4) the assumption that JVs are a flexible (low risk) mode of operation. This discussion leads to suggestions how to design empirical research more consistent with the statements of the theory.

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Section: Jvs Do Not Enhance Flexibilitymentioning

confidence: 99%

Transaction cost perspectives on alliances and joint ventures: explanatory power and empirical limitations

Meyer

Wang²

2015

Handbook on International Alliance and Network Research

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“…Hence, ABB formed a joint ventures with a local partner to which the local partner then transferred all it existing operations. The joint venture "ABB Transformer" in Vietnam was then restructured to fit the need of the global ABB operation, including major technological upgrading and outsourcing of peripheral activities such as lunch time catering (Nguyen and Meyer 2004).…”

Section: The Brownfield Acquisition Conceptmentioning

confidence: 99%

“…1 They describe the phenomenon for foreign investors in Central and Eastern Europe (CEE) in the early 1990s, and explain it by the specific conditions prevailing during the early stage of transition from a central plan regime to a market economy, notably the availability of "cheap" assets available through acquisition in the privatization process, that however were embedded with organizations designed to operate in a central plan regime rather than a competitive market economy. Yet, recent evidence suggests that the phenomenon may be common in a range of other emerging economies such as Egypt and Vietnam (El Shinnawy and Handoussa 2004;Nguyen and Meyer 2004), and also for outward investment from an emerging economy, namely Taiwan (Cheng 2006). However, this evidence remains sketchy because data have not been collected systematically.…”

Section: Introductionmentioning

confidence: 99%

Brownfield Acquisitions

Estrin

Meyer

2011

Manag Int Rev

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0Firms seeking specific complementary resources to pursue their growth strategy in emerging markets may use 'brownfield' acquisitions to provide access to resources that are embedded in existing firms. This strategy requires a fundamental restructuring of the acquired firm to replace many of its resources and organizational structures. 0In this paper, we review the concept of brownfield acquisition, establish its empirical relevance outside of transition economies, explore its theoretical and empirical antecedents, and discuss its implications for theorizing in international business. 0 Our empirical results based on a six-country survey in emerging markets show that brownfield acquisitions are most likely for projects that are more integrated with the parent's global operations, and where local firms are weak and institutions are strong. 0The concept provides a focal point for research on the resource-based view by illuminating the process of resource combination in firm growth. It also provides an example of where different aspects of the institutional framework may have contrary effects on various elements of business strategy.

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“…Even without majority ownership, Carlsberg engaged in major training and restructuring investments. 28 After several years of losses, both JVs generated handsome profits, which were largely generated by the local brands. This experience illustrates not only the power of local brands in lower income markets, but also the need for multi-year horizons for entry strategies in emerging economies.…”

Section: Polandmentioning

confidence: 99%

Market Penetration and Acquisition Strategies for Emerging Economies

Meyer¹,

Tran²

2006

Long Range Planning

122

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Multinational enterprises (MNEs) are expanding their global reach, carrying their products and brands to new and diverse markets in emerging economies. As they tailor their strategies to the local context, they have to create product and brand portfolios that match their competences with local needs.A multi-tier strategy with local and/or global brands may provide MNEs with the widest reach into the market and the potential for market leadership. However, it has to be supported with an appropriate combination of global and local resources. Foreign entrants thus have to develop operational capabilities for the specific context, which requires complementary resources that are typically controlled by local firms. As institutional obstacles and the structural weaknesses of local businesses often inhibit the direct acquisition of such firms, foreign investors may pursue un-conventional strategies, such as staged, multiple, indirect, or Brownfield acquisitions, to acquire local resources.We outline these strategies for penetrating local markets by acquisition of local firms, and illustrate them with the entry and growth of Carlsberg Breweries in four very different emerging economies: Poland, Lithuania, Vietnam and China.3

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Managing Partnerships with State-Owned Joint Venture Companies: Experiences from Vietnam

Cited by 20 publications

References 1 publication

Transaction cost perspectives on alliances and joint ventures: explanatory power and empirical limitations

Transaction cost perspectives on alliances and joint ventures: explanatory power and empirical limitations

Brownfield Acquisitions

Market Penetration and Acquisition Strategies for Emerging Economies

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