International Business Strategy Essay Example | Topics and Well Written Essays - 1500 words - 4

International Business Strategy - Essay Example30% of the 1100 joint ventures shaped earlier 1967 between one of the US firm and the company from the other developed nation did non bring home the bacon largely due to organisational or strategic changes made by the care (Killing, 1982). The paper attempts to explore just about key reasons behind the failure of large IJVs at the same, it will also find the specific succeeder factors of IJVS in emerging economies.Cultural difference between partners is considered one of the principal reasons that come in the stylus to the success of joint ventures. Before forming a joint venture, the companies do not conduct compatibility analysis. Most of the time, their management style differs from each other. One could be more decentralised in its decision making abut while the other partner believes in more control and does not provide enough freedom to its line staff. Even after forming a joint venture, no efforts are made to create a sui table mix among the staff making the joint venture nonfunctioning. Farkas and Avny (2003) argue, Difference in organizational civilisation is the reason for performance gaps in joint ventures rather than national culture differences. They also state, The influence of ethnical difference on the performance of international joint ventures is indirect, but highly influenced by the level of avow between its partners. The researchers studied those joint ventures where one of the partners hailed from Israel. Cultural differences between western multinational enterprises and Japanese companies befuddle also been determined as the factor behind the failures of their joint ventures (Brown et al. 1989).Chryslers spinal fusion with Daimler is worth mentioning here that could not evoke successful outcomes due to cultural mismatch between them. The Chrysler course of study was a profitable division prior to merger but its performance deteriorated after the merger. Management undertook sever al layoffs at Chrysler following the merger that was never anticipated in the beginning.