...This article was downloaded by: [Monash University] On: 27 September 2010 Access details: Access Details: [subscription number 922191555] Publisher Routledge Informa Ltd Registered in England and Wales Registered Number: 1072954 Registered office: Mortimer House, 3741 Mortimer Street, London W1T 3JH, UK The International Journal of Human Resource Management Publication details, including instructions for authors and subscription information: http://www.informaworld.com/smpp/title~content=t713702518 The role of human resource management in international joint ventures: a study of Australian-Indian joint ventures Sharif N. As-Saber; Peter J. Dowling; Peter W. Liesch To cite this Article As-Saber, Sharif N. , Dowling, Peter J. and Liesch, Peter W.(1998) 'The role of human resource management in international joint ventures: a study of Australian-Indian joint ventures', The International Journal of Human Resource Management, 9: 5, 751 — 766 To link to this Article: DOI: 10.1080/095851998340775 URL: http://dx.doi.org/10.1080/095851998340775 PLEASE SCROLL DOWN FOR ARTICLE Full terms and conditions of use: http://www.informaworld.com/terms-and-conditions-of-access.pdf This article may be used for research, teaching and private study purposes. Any substantial or systematic reproduction, re-distribution, re-selling, loan or sub-licensing, systematic supply or distribution in any form to anyone is expressly forbidden. The publisher does not give any warranty express...
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...looking to adopt joint venture strategy to enter into new markets to gain competitive advantage through shared knowledge, resources and experience. Many companies have found it very comfortable to adopt IJV ahead of other entry strategies to enter into international market. There has been a wide range of researcher conducted in the area of international joint venture that highlights various factors and motives identified across the world. With larger companies adopting joint venture into international market it has become very critical to conduct research to identify the parent company motives to adopt this strategy and the benefits and challenges faced by the these companies. This dissertation is an effort to bring out the theoretical background of the concepts of international joint venture and its application in the industrial practices across the globe. The research will present the information and proceedings in systematic chapters that will explain the design, methods and analysis apart from its conclusion report. 1.1 Background of the Joint Venture: Summarizing the background of the research topic is very critical in understanding the research background. To start with we need to learn the meaning of joint venture. Beamish (1998) has defined the international joint venture as the venture between a foreign company and a domestic company from the place of operations to promote business. Geringer & Hebert, (1989) believed the venture to be international if their business...
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...International Joint Venture System Complexity and Human Resource Management* Randall Schuler Rutgers University and GSBA Zurich Ibraiz Tarique Pace University Chapter to appear in I. Björkman and Günter Stahl (eds.), Handbook of Research in IHRM. (London: Edward Elgar Publishing, 2005) * The authors wish to thank S. Jackson, M. Moelleney, B. Kugler, G. Bachtold, W. Harry, J. Ettlie, D. Osborn, Y. Gong, and I Björkman for their suggestions and commentary in the development of this chapter. © Randall S. Schuler and Ibraiz R. Tarique. 1 International Joint Venture System Complexity and Human Resource Management An increasing number of organizations are entering new global markets as they seek to develop and sustain a competitive advantage in today’s highly competitive global environment (Taylor, 2004; Ernst & Halevy, 2004). To accomplish this international expansion, organizations can and do use many different market entry strategies (Narula & Duysters, 2004; Briscoe & Schuler, 2004; Beamish & Kachra, 2003; Newburry & Zeira, 1998; Child & Faulkner, 1998). Prior research has shown that cross-border alliances, particularly international joint ventures (IJVs) are perhaps the most popular means of international expansion (Ernst & Halevy, 2004; Briscoe & Schuler, 2004; Schuler, Jackson, & Luo, 2004). Despite their popularity, however, IJVs are difficult to develop, organize, and manage. Research has shown that a majority of IJVs fall short of their stated goals leading...
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...Market Failure Paper: Case of TCL and Alcatel Joint Adventure Jennifer Long Grand Canyon University: ECN 601 April 11, 2012 In the contemporary society, many multinational enterprises would like to use joint venture as their favorite entry mode due to its unique advantages, such as: directly access to the partner’s knowledge, sharing development costs and risks. Meanwhile, it is important to figure out the factors that will cause failure of a joint venture. Some major factors are culture difference, poor leadership and insufficient planning which are all fatal to the operation of joint venture. Cultural differences have direct influences on international joint venture performance through management practice and organizational learning; poor leadership will result in bad business integration and even wasting the preciously initial funds; insufficient planning may trouble company in the long term. In the article from the China Daily, many Chinese companies are now hoping to utilize global partnerships to make inroads in the major international markets (China Daily, 2011). If a company wants to speed up the expansion, it may decide to use surplus resources or raise further cash by cooperating with another existing business. Joint venture can be defined as an entity formed between two or more parties to undertake economic activity together. Chairman of TCL Corporation explained that TCL was most attracted to the joint venture with Alcatel and acquiring and using their...
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...International joint ventures (IJV) have been a topic of interest in research and literature both in the past and present. Several findings suggest that the success of IJV may be due to numerous factors (Bener & Glaister 2010), though there are many issues which underlie the performance and managerial implications in IJV. This paper aims to discuss the recent contrasting views and perspectives from the academic, peer reviewed literature in relation to numerous issues, focussing on managerial implications that surround international joint ventures. An IJV occurs when two businesses based in two or more countries form a partnership, where a company that wants to explore international trade without taking on the full responsibilities of cross-border business, to join up with a foreign partner (Yan & Zeng 1999). Firms have been relying on IJV as a strategic tool to maximise economic benefits, product expansion, manage risk, adapt to new skills and technologies, and create new products and services faster with the assistance of a foreign company (Luo 2002; Damanpour, Devece, Chen & Pothukuchi 2012). According to Bener and Glaister (2010), the level of control from the parent company, autonomy to management and the level of trust between partner firms are all crucial to the success of IJV by opening up market opportunities through which foreign companies can gain a competitive advantage. Yildiz (2013) also supports this, stating that the level of trust between partners is needed...
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...The effect of cultural distance on entry mode choice: the moderating effect of language diversity Name: Rajae El Aiachi Student number: 10202773 Teacher: Dr Johan Lindeque MSc. In Business Administration – Theories of International Management Date: 27-09-2015 Abstract (50 Words) Previous studies have shown that the choice of entry mode depends on various types of aspects, containing also cultural distance between countries (Arora and Fosfuri, 2000). However, there is not a lot of consensus among these articles. A few articles mentioned the effect of language distance on entry mode choice. Keywords: Cultural distance, entry mode choice and language distance 1. Introduction In this time of globalization a lot of companies are expanding their international business activities in overseas market. The ways in which firms are expanding their business in overseas market differ per enterprise and country. The hierarchical model of market entry modes by Pan and Tse (2000) shows that there are different choices of entry modes. Entry modes can be seen as equity-based versus non-equity based. Within equity-based modes, there is a division between equity joint ventures and wholly owned operations. Within nonequity based modes, there is a division between export and contractual agreements. Prior research demonstrated that the choice of entry modes rely upon different types of components. Especially, a lot of previous studies focused on the effect of cultural distance ...
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...Objectives * Examine how international growth places demands on management and HRM * Identify factors that impact on how managers of internationalizing firms respond to these challenges * We cover the following areas: * Structural responses to international growth: The organizational context in which IHRM activities take place. Different structural arrangement have been identified as the firm moves along the path to international status – from export department through to more complex department such as the matrix, transnational, heterarchy, networked. * Control and coordination mechanisms: Control and Coordination aspects. Formal and informal mechanisms were outlined, with emphasis on control through personal networks and relationships, and control through corporate culture, drawing out HRM implications. * Mode of operation used in various international markets: The various modes-such as wholly owned, franchising, management contracts and international joint ventures- used by multinational for foreign market entry and expansion. Again, we attempted to demonstrate the IHRM implications of the various modes, although noting that most of the literature focuses on wholly owned subsidiaries and international joint ventures. * Effect of responses on HRM approaches and activities: How international growth affects the firms approach to HRM. Firms vary from one another as they go through the stages of international development, and react in different...
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...1.0 Executive Summary This report aims to analyze and evaluate the international joint ventures conducted by one of the world best low cost airlines, Air Asia, through their operation years. In particular, Air Asia Indonesia, Thailand, Expedia and Air Asia Japan are being chosen to probe into This research put priority on the factors that turn Air Asia Indonesia, Expedia and Air Asia Thailand into a success throughout their operational year. The Successful International Joint Ventures of Air Asia have gained themselves the benefits from acquainting the right market orientations, in which they have secured a great amount of customers respectively. This leads Air Asia Indonesia and Air Asia Expedia to gain a massive profit and become the dominant airline being in their respective nations. Besides, the commitment is also one of the main contributing factors to the success of Air Asia IJV as well as Economy conditions of host countries had been a major factor to success in IJV. In depth analysis of local GDP of Thailand had granted Thai Air Asia to achieve their business objectives. Throughout the research, it shows that Air Asia Expedia and Thai Air Asia and Indonesia Air Asia have spared no efforts in order to succeed in the aviation industry. Conversely, this research also identified a failed IJV in Air Asia operation with Japan. The main reason behind this failed IJV was usage difficulties found in online booking website of Air Asia. These factors have led to Air Asia Japan...
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...NO-60 Q1. What is meant by the term culture? In what way can measuring attitudes about the following help to differentiate between cultures: centralized or decentralized decision making, safety or risk, individual or group rewards, high or low organizational loyalty, cooperation or competition? Use these attitudes to compare the United States, Germany, and Japan. Based on your comparisons, what conclusions can you draw regarding the impact of culture on behavior? Ans:- culture is defined as the shared patterns of behaviors and interactions, cognitive constructs, and affective understanding that are learned through a process of socialization. Culture is the acquired knowledge that people use to interpret experience and generate social behavior. This knowledge forms values, creates attitudes, and influences behavior (Hodges, 2005). Centralized versus decentralized cultures are different in which the top managers or leaders make all the important decisions in a centralized culture and in a decentralized culture, the decisions are made throughout the levels. Safety and risk in some cultures are frowned upon because the results are unpredictable yet other cultures are “riskier” and encourage risk taking on all levels. The same can be said about individual versus group rewards. Some societies or organizations reward individually and other only based on the group effort. High or low organizational loyalty in cultures are different in which the high loyalty in an organization...
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...International Management: Managing Across Borders and Cultures, Text and Cases, Seventh Edition SEVENTH EDITION FEATURES • Streamlined text in eleven chapters, with particular focus on global strategic positioning, entry strategies and alliances, effective cross-cultural understanding and management, and develop- ing and retaining an effective global management cadre. The seventh edition has been revised to reflect current research, current events and global developments, and includes company examples from the popular press. In Chapter 1, we introduce trends and developments facing international managers and then expand those topics in the context of the subsequent chapters. For example, we discuss developments in globalization and its growing nationalist backlash— in particular resulting from the global financial crisis. We discuss the effects on global business of the rapidly growing economies of China and India and other emerging economies such as those in Africa, and the expansion of the EU; the globalization of human capital; and the esca- lating effects of Information Technology and the global spread of e-business. We follow these trends and their effects on the role of the international manager throughout the book. For exam- ple, in Chapter 6 we focus further on strategies for emerging markets, while also dealing with changing strategies to respond to economic decline around the world and an increasing level of nationalism in some industries; we have a...
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...INTRODUCTION For fulfilling the requirement of this project, we have decided to form a joint venture between a Bangladeshi leather company with an Indian company or a Chinese company. The name of the Bangladeshi leather company is Leatherex Footwear Industries Ltd, which will mainly provide leather and labor in this joint venture because labor cost is low in Bangladesh. The whole manufacturing process will take place in Bangladesh. On the other hand, India and China will mainly provide technology, idea, R&D and special equipment (if required). We have decided to go for joint venture, rather than exporting because, joint venture provides companies with the opportunity to gain new capacity and expertise. It will allow us to enter new geographic markets, that is, India or China and gain new technological knowledge access to greater resources, including technology and sharing of risks with them. China and India is not an easy market to enter, as from geographic point of view, they are vast and also they possess a total different culture. Again, it will be difficult for us to monitor and sustain. So, by joint venture, we will be able to penetrate their market and also to their culture easily and quickly through them as they already have enough knowledge about their market. EXTERNAL ANALYSIS – PESTLE ANALYSIS THE PESTEL ANALYSIS OF INDIA Political: (Stable) After researching the taxation and government policies, it can be said that...
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...Joint Venture The globalization strategy our team is going to explore for Moonglow is Joint venture. We are going to discuss the pros and cons to a joint venture along with some environmental factors that Moonglow needs to consider before deciding on a location. We are also going to explore different organization structures and give a recommendation on how to restructure Moonglow to succeed in the global market. Lastly, we will describe ways Moonglow can expand internationally while maintaining its eco-friendly practices and continue producing organic products. According to Jones (2011) a joint ventures is a “strategic alliance among two or more organizations that agree to establish and share the ownership jointly of a new business” (p. 342). Joint ventures are formal and bounded by a legal agreement with all parties’ rights and responsibilities spelled out. Joint ventures are considered one of the best methods for entering into foreign markets. As with any business venture, there are pros and cons that need to be considered (Jones, 2011). Many foreign markets have the potential to be closed to outside companies. Joint ventures make entering into closed markets easier. The pros to entering into a joint venture are access to limited capital resources, transfer of technology, bypass of legal restrictions, access to raw material, knowledge of regulatory climate, and investment incentives (Hall, 1984). In a joint venture, Moonglow will gain...
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...The distinguishing and integral feature of modern international business is globalization, which has a dramatic effect on domestic economies of all countries as well as the world market. Being a general term to describe the denationalization of markets and rising of the global economy, the process of globalization has obviously larger impact on the modern world than just unification of national markets into single international one. Globalization has an enormous influence upon all spheres of people’s lives, including economic, political and cultural spheres. The process of globalization has been always accompanied by the establishment of large international corporations, in which the level of production, consumption, export, import and income depends on the decision of international centers situated beyond the certain country’s borders. As any other process that takes in the world, globalization has certain advantages and disadvantages, thus, it has its followers and opponents. For some countries globalization offers multiple opportunities of economic growth and prosperity, however, the other ones are threatened by it, due to the economic inequality and political control it can cause. Developed and developing countries have different fears concerning globalization. While some developed countries anticipate the process of globalization, because it opens new low-cost markets of developing countries and creates new competitive environment, which might not be favorable for domestic...
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...International Joint-Venture in Indonesia Introduction : Indonesia is a country that offers lot of business opportunities but also tremendous challenges. Indeed, it can be difficult for a foreign company to establish itself and navigate through the local business climate, this difficulty is reflected in the country’s ranking of 109th out of 189 countries in the World Bank Doing Business Report of 2016. Restrictive legislation, bureaucracy as well as Indonesia’s diverse cultural are several entry barriers for foreign companies seeking investment opportunities. Often, it is necessary to find a local partner to enter the Indonesian market, and to form an international joint-venture can is one of the way to enter the marketplace. Even though it remains difficult to enter the Indonesian Market, the government started to implement measures to facilitate foreign investments since 2007: • Making it easier to start a business: Indonesia introduce online procedures to create a business structure • Reduced regulatory complexity: Indonesia introduced an online system for filling and paying social security contributions. International Joint Venture in Indonesia : In Indonesia, it is necessary for any foreigner who want to start a business, including a joint-venture, to conduct his business activity through a foreign investment company, called PMA (Penanaman Modal Asing). The PMA is regulated under the Indonesian Company Law. The contract signed by the two parties of the JV...
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...Executive Summary Joint venture is method or an approach which allows companies to further their interest internationally without taxing their resources b having a partner who is compatible to work on the project albeit in short term or long term project. Joint venture allows companies to pool their resources together and benefit each of the companies in reaching their potential. Apart from that, joint venture also allows company to complement each other short coming with what they do best. This is evidently shown when discussing Daicel Evonik Ltd where Daicel Chemical Industries Ltd and Huels AG complement each other in term market knowledge and technological capabilities know-how among them. But then, joint venture does have limitation where culture plays an important barrier to achieve success. In Danone Co. Ltd and Wahaha Co. Ltd which will be discussed further, the dissolution of ventureship between these two companies can be attribute to communication particularly in conflict management. Thus, managing cultural differences is important especial in term of managing conflict among the partners. Conflicts are parts of life and may appear in any organization. They particularly often occur in hybrid organizations whose parents coming from different cultures, different countries with different ways of thinking and doing things. Knowing how to management conflict with proactive approach (minimize conflicts to happen) and reactive approach (resolve conflicts) is crucial for firms...
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