A Review of Literature on How to Manage International Joint Venture

A of on How to Manage International reciprocal Venture Successfully - Literature refreshen ExampleAn IJV represents a relationship between voluntary cooperative partner companies, in which these companies maintain their emancipation and objectives. However, in the frame st come ingic hampers, an antonym of cooperative behavior is opportunistic behavior, the latter being still as mismatch of expectations and preferences (current or future) of one partner (Michael and Louis, 1989). Key moderating measures of opportunism are increase control over the IJV by members in order to receive a portion of fair income (Feya and Beamishb, 1999). backchat Among the various models of cooperation, international joint ventures are considered as the preferred mode of entry by firms (Reinier and Maria, 2009). However, the rate of failure of these organizational forms remains high. In addition, the IJVs are known for their fragility and their heterogeneous performance (Reinier and Maria, 2009). some(prenominal) cases of IJV experience a failure due to the emergence of a contradict between the partners. Among these cases, we passel asseverate the example of the partnership between the French group Danone and Chinese Wahaha established in the beverage application (Pothukuchi et al., 2002). The two groups signed an agreement in 1996 to create a joint venture, Wahaha Joint Venture Company, with 51% owned by Danone and 49% owned by the Chinese partner. After nearly a decennary of fruitful collaboration, the relationship deteriorated and conflicts erupted in 2006. Indeed, Danone discovered that its partner violated non-competition clauses specified in the contract. The Chinese products are similar to those marketed by Danone. This conflict led the transfer in 2009 of shares in Danone joint entity with its Chinese partner. Studies on international joint ventures have dealt with various topics the choice of partner, the formation of international joint venture, control mechan isms and inter-firm leave and the performance of the alliance. Some of them are focused on the instability of IJV (Reinier and Maria, 2009) and particularly on the determinants that affect the terminus of this relationship. In contrast to our knowledge, a few studies have attempted to introduce management tools that can suffice enterprises to manage conflicts. In this scene, the work of Mjoen and Tallman (2003) proposed a management tool change during the phase of post-merger integration and acquisition. The spirit of this article is to provide the first theoretical approach to educating managers of joint ventures to develop management tools to manage crisis conflicts. These conflicts can occur throughout the formation process of IJV, hence the need to mobilize. Indeed, despite the large number of conflict researches and those on IJV crisis management, few of them are interested in bringing these two issues together (Mjoen and Tallman, 2003). It is in this context that our rese arch will follow the following plan firstly, this research focuses on the instability and conflict in the IJV and secondly, this research provides the tools of crisis management and discusses how to better manage the conflict within the framework of the partnership relations. The International Joint Ventures and Conflict The Instability of International Joint Ventures The international joint venture is a form of alliance between companies involving creation of a new independent legal structure