An Examination of the Core Dimensions
New Horizons in International Business series
Appendix 2: Case vignettes: outlines of the sample IJVs
IJV 1 UK partner: European partner: Joint venture: European partner nationality: Year of formation: Equity share: Motives of UK partner: Motives of European partner: Industry Aerospace and defence Aerospace and motors Military aircraft Swedish 1995 50:50 Market entry – new market for product Non-market entry – strategic issue to raise volume: sharing of R & D costs, exchange of complementary technology, and to increase competitiveness Satisfied Satisfied Satisfied Industry Aerospace Aerospace Aircraft landing gear France 1995 50:50 Non-market entry: sharing of R & D costs, access to (French) government funding, improving position in market, reducing competition. 185 Performance outcomes: UK partner: European partner: Joint venture: IJV 2 UK partner: European partner: Joint venture: European partner nationality: Year of formation: Equity share: Motives of UK partner: 186 Strategic business alliances Motives of European partner: Non-market entry: sharing of R & D costs, spreading risk of large project, faster payback on investment, reducing competition. JV terminated in 1998 (French partner bought out UK partner’s shares) Poor performance overall – lower returns than expected Very satisfied Satisfied Industry Chemicals production Chemicals production Chemicals services France 1991 50:50 Market entry: faster entry, presence in new markets Market entry: to facilitate international expansion starting in UK JV terminated in 1997 (UK partner bought out European partner’s shares) Satisfied Satisfied Satisfied Industry Defence manufacture Defence manufacture Defence manufacture France 1993 50:50 Market and non-market entry: sharing of R & D costs, faster payback on investment, product diversification, access to new market. Performance outcomes: UK partner: European partner: Joint venture:...
You are not authenticated to view the full text of this chapter or article.
Elgaronline requires a subscription or purchase to access the full text of books or journals. Please login through your library system or with your personal username and password on the homepage.
Non-subscribers can freely search the site, view abstracts/ extracts and download selected front matter and introductory chapters for personal use.
Your library may not have purchased all subject areas. If you are authenticated and think you should have access to this title, please contact your librarian.