Technology pricing and capital structure issues in international joint ventures : a developing country context | |
| Author | Ranjan, Rajeev |
| Call Number | AIT RSPR no. SM-98-27 |
| Subject(s) | Joint ventures--Developing countries Technology transfer--Costs |
| Note | A research study submitted in partials fulfillment of the requirements for the degree of Master of Business Administration, School of Management |
| Publisher | Asian Institute of Technology |
| Abstract | This study focuses on the two most critical issues, technology pricing and capital structure, during negotiation of an international joint venture. Case studies of two joint ventures have been included to bring forward the points that should be taken care of while negotiating these two issues. Data collection is based on the interviews of the personnel concerned with the creation of these two joint ventures. This research study identifies several factors such as government regulation, competitive advantage offered by the technology, stage of technology in its life cycle, and capabilities of the partners as critical determinants of valuation of technology. Similarly, factors such as government regulation, foreign capital input, country risk, and technology intensiveness are very important while governing the equity distribution among the partners. This study tries to highlight that control of the joint venture is not dependent on ownership levels of the pa1tners. Control structure, system, problem areas, mechanism and change of control with time are some of the factors that should be taken care of while negotiating the control aspects of the joint venture. This research underlines the importance of government regulation in different aspects of international joint ventures located in a developing country. Lastly, this study supports technology contribution as being an important factor for acquiring a higher bargaining power during the negotiation of joint venture. |
| Year | 1998 |
| Type | Research Study Project Report (RSPR) |
| School | School of Management (SOM) |
| Department | Other Field of Studies (No Department) |
| Academic Program/FoS | Master of Business Administration (MBA) (Publication code=SM) |
| Chairperson(s) | Gupta, J. P. ;Ramanathan, K.; |
| Examination Committee(s) | Paul, H.; |
| Scholarship Donor(s) | Royal Netherlands Government; |
| Degree | Research Studies Project Report (M.B.A.) - Asian Institute of Technology, 1998 |