Among all these factors, culture has been considered as one of the most important factors (Al-Khalifa & Peterson, 1998 Madhok, 2006 Madhok et al., 2008 Dumludag, 2009). 307, cited in Li et al., 2001), state that “joint venture may be seen as a way of bridging culture gaps” and “joint venture with local investors promises to reduce political complications while diversifying against exportation risks (Brouthers & Brouthers, 1988).”Īccording to Robson, Leonidou, and Katsikeas (2002), there are many factors which influence the success of an International Joint Ventures such as Business Environment, Government Policies, Culture, level of analysis, geographic focus, performance measurement of IJV Partners and so forth. The companies look for several advantages while entering into an IJV, like an increase in the range of exploitable complementary resources by both local and parent companies to innovate the capacities, efficiencies and core competencies (Geringer & Hebert, 1991 Zheng & Larimo, 2010). Over the past two decades, there has been phenomenal increase in the number of International Joint Ventures (IJVs) as companies have strived to become more globally interconnected (Silva & Oliveira, 2017 Zhang et al., 2013 Zheng & Larimo, 2010), both in terms of frequency and for gaining strategic importance (Geringer & Hebert, 1991). Further study has been recommended on an unsuccessful venture where the IJV failed due to such cultural problems to check the effectiveness of the solutions used.

During the research, eight employees from the top management were interviewed, who highlighted several intercultural problems and also discussed the solutions which could effectively resolve such issues. The research objective is to investigate whether the success of joint venture can be attributed to the solutions of intercultural problems in congruence. This chapter elaborates such issues and how the company resolves them through a phenomenological approach. The IJV companies face several issues related to intercultural differences and do a lot of maneuvers to ensure a successful venture. AbstractIn the brace of globalization, the number of international joint ventures (IJVs) has shown a steep rise over the past two decades, with the aim of becoming more globally unified and increasing the range of exploitable complementary resources that increase the capacities, efficiencies, and core competencies of the IJV companies.

Joint venture definition complications