With rapid changes in the global business scenario and intensified competition the MNCs are 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 arrangement owns a higher degree of importance at multiple countries or at a global stage. Charles W. Hills (2007) has elaborated that international joint venture is an association, alliance between more than one enterprise of firm with legal entity come coming together to
