1 AIT Asian Institute of Technology

Joint venture operation in India : issues related to conflict

AuthorVarma, Siddharth
Call NumberAIT RSPR no. SM-93-14
Subject(s)Joint ventures--India
NoteA research study submitted in partial fulfillment of the requirements for the degree of Master of Business Administation.
PublisherAsian Institute of Technology
Series StatementResearch studies project report ; no. SM-93-14
AbstractFornrnUon of joint ventures with locnl fimrn offers n prom1smg means for Mu1tinntionnl Corporn1fons (MNCs) to access forejgn markets specially tJ1e large domesLic markets of developjng cmmtries like Chinn nnd India. They also offer the local finllS ru1 opportunity to acquire modern teclmo]ogy 11nd managerial prnctices. During 'IJ1e pnst two years Ind.in has experienced HberaJiznt.lon of ils economic policies. This push tow111·ds liberalizntion hns nrnde India H potent.in] recipient of foreign capital through fornrn1fon of joint ventures. This research nttempts to find out the problems nnd issues which are of relevru1ce to the operntion ofjofot ventmes in India. A fojr]y detailed liternture review was carried ou1 lo gniD insigh1s into the problems nnd issues that could ndversely iufluence the effective fwlctioning of internationnl joint. ventmes. Bnsed on this review 1m ana.lyl.ical framework wns developed ·1o study 1J1e problems and issues of joint venture operations in India. This framework suggests that problems in the operation of joint ventme mise p1i.rtJy due to I.he conflict of objecUves between 1J1e local pnrt.ner, the foreign partner Emd t11e host. government and pastly due to .incompatibility between tJ1e joint venture paii.ners. Jn order to operntiona.lize lhis frrunework nnd gafo 1m w1derst1mcling of problems and issues reln.ted to joint venture operation in India, detnlled .int.e1views were conducted in four presUgious joint. vent.urn companies i.n India. A questionnaire was 11dminist.ered to obi.a.in data and this was supplemented by interviews with senior mmrngers. The st.u.dy suggests thnt. in .India, problems mising out of issues re.lated l.o conflict between objectives of joint venture partners nre not. ns selious as those that. n1ise due compatjbflity relat.etl issues or issues re1Hl.ed to objectives of joint ventme and the host government:. More serious 1ssues relate to taxnt.ion, mrurngerllt1 belrnvior, employee nttitu
Year1993
Corresponding Series Added EntryAsian Institute of Technology. Research studies project report ; no. SM-93-14
TypeResearch Study Project Report (RSPR)
SchoolSchool of Management (SOM)
DepartmentOther Field of Studies (No Department)
Academic Program/FoSMaster of Business Administration in International Business (Publication code = SM)
Chairperson(s)Ramanathan, K.
Examination Committee(s)Shmif, M . Nawnz;Igel, Bmbarn
Scholarship Donor(s)Government of Netherlands.
DegreeResearch Studies Project Report (M.B.A.) - Asian Institute of Technology, 1993


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