International Joint Venture Essay Example | Topics and Well Written Essays - 4000 words

outside(a) Joint Venture - Essay ExampleProblems atomic number 18 majorly experienced in development, organization and heed these make the IJV to fail to achieve its projected goals. These challenges are a result of diverse objectives and motivations of the p devicener companies, making the art of balancing their operations an issue. Further, management will have to problems in planning and when trying to balance the mutual benefits for the partners. Inefficiency in the human resource management majorly contributes to failures of IJV (Faulkner and Geringer 2000 Desai, Foley and Hinles 2004). Additionally, governmental systems, economic state, legal system, difference in partners and conflicting contracts have an upper hand in determining the performance of management. The human resource issues are challenges face by management of the IJV in its day-to-day activities and solution will be attained once an efficient human resource manager with expertise on international collaborati on is engagemented. The politics also pose some challenge as they can come up with policies that may threaten the success of the collaboration. instruction should make reasonable political judgment since political appraisal that is present in some is something to avoid. The two partners may enter into a merger with a view of eliminating duplication of resources and processes thus fostering greater efficiencies in management. Culture differences pose another challenge to IJV. For instance, collaboration between Pirelli and Dunlop failed in the 1980s referable to differences in the English and Italian cultures (Barkema, Bell, Shenkar & Vermeulen 1997). Strong Charter Establishment of a strong charter to aid in securing partners with the necessary attributes required to enhance success... International Joint VentureCollaboration has had several impacts on the sustenance of businesses in the market as well as their extinction. Market volatility brought about by changes in customers e xpectations, new entry of competitors in the market, dynamics in economic climate have posed great damage to many businesses. Management should employ strategic corporate policies in managing the venture in areas of human resource, supply chain, innovation, production and customer service. The management of IJV should recognize innovation as the major turn on in growth of companies and their prosperity. Together with economic dynamics and globalization, technological change has favoured the growth of IJVs. Despite the challenges facing the success of IJV, companies should engage in efficiency management system as this will help in combating all the challenges and enhance performance and productivity of the firm. Furthermore, companies should use collaboration as stepping stones to innovation and creativity as this will aid in coming up with ideas that will make the companies to be the leader in the market and enjoy the advantages of large scale operations. For companies to be succe ssful when they enter into collaborations, they should first have a clear understanding of the strategic objective of the relationship they intent to create before focussing on the risks and benefits to be obtained. Collaboration is geared at enhancing business growth.