The impact of strategic intent on effectiveness of international joint venture: the moderating role of Partner firms overall resources deployment

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ACKNOWLEDGEMENT

I would like to take this chance for thanking my research facilitator, friends & family for support they provided & their belief in me as well as guidance they provided without which I would have never been able to do this research.



DECLARATION

I, (Your name), would like to declare that all contents included in this thesis/dissertation stand for my individual work without any aid, & this thesis/dissertation has not been submitted for any examination at academic as well as professional level previously. It is also representing my very own views & not essentially which are associated with university.

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Table of contents

ACKNOWLEDGEMENTII

DECLARATIONIII

CHAPTER 01: INTRODUCTION1

Introduction1

Background of the Study1

Purpose of the Study2

Problem Statement3

Variables Used in the Study3

Research questions4

Hypotheses4

Outline of the Study5

Summary6

CHAPTER 02: LITERATURE REVIEW7

Introduction7

Motives for International Joint Ventures7

Goal Compatibility8

Industry Similarity or relatedness10

Foreign parent strategic goals13

Local parent strategic goals13

Partner strategic fit14

Partner firms overall resources deployment strategy15

The effectiveness of IJV15

Summary17

CHAPTER 03: METHODOLOGY18

Introduction18

Research Design18

Data Collection Method19

Search Technique20

Summary21

CHAPTER 04: DISCUSSION22

Introduction22

Motives for IJV Formation (LyondellBasell)22

Motives for IJV Formation (Saudi Polyolefins Company)22

Goals Compatibility22

Industry Relatedness23

IJV Effectiveness23

Summary24

CHAPTER 05: CONCLUSION25

Introduction25

Conclusion25

Summary29

REFERENCES30

CHAPTER 01: INTRODUCTION

Introduction

This chapter provides a very broad but concise introduction & the background of the problem to be addressed for the readers, so that they could have an overview of the topic. The chapter also gives the objectives of the research & the research questions.

Background of the Study

The dramatic growth of international joint ventures (IJVs) between firms is fundamentally reshaping the nature of international business. As market complexity is growing, inter-firm collaboration has become a crucial component of the pursuit of international competitive advantage. Above of all it is important to understand why firms in general want to expand abroad. Foley (2004) explains that there are number of motivations (traditional and beyond the traditional motivations) for going global. The traditional motivations are (1) access markets beyond their home base; (2) avoid changing domestic conditions and (3) improve a company's competitive position by lowering their costs. Beyond traditional motivation, the goal of global trade is to expand the scope and reach of your company so that the tools and resources available to fight your competition give your company an unbeatable edge. An edge that renews and transforms itself faster than competition can keep up. This is indeed one reason among many why firms may be involved in forming alliance (Peteraf, 1993, 179).

Taking into account the above mentioned motivations, firms have different alternative market entry strategies to choose according to their various underlying motivations: whether it is going alone or forming alliance with other firms. This type of entry mode offers a lot of benefits: IJVs help firms to expand geographical market participation, create economies of scale and critical mass, reduce risks, and learn new skills and technologies, and they facilitate effective resource-sharing. However, despite these apparent benefits, IJVs often entail serious competitive risks and managerial difficulties in implementing the cooperative relationships, and this hinders achievement of the intended collective ...