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Are all Joint Ventures slated to fail? January 6, 2007

Posted by Vijay in Business, India, Issues.
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I am not talking about financial failure.

It seems like very few JV’s sustain in the long term. I wonder why?

1. Could it be cultural differences that crop up?

2. Are JVs used as entry strategies by foreign companies? Once they get their bearings, they don’t need the JV any more.

3. JV partners dont see value in each other

To name some… Hutch-Essar (currently unfolding drama), Modi-Xerox, Tata-IBM, Kinetic-Honda, Hero-Honda (things are shaky I hear).

I think its a combination of 1 and 2.

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Comments»

1. praneshachar - January 6, 2007

vijay I agree with it is point 1 and2
in many cases it is 2 which will paly very vital role. most of the foreing cos., do not want to share the fruits when it starts yeilding.
They use the JV parter as a platform for take off and it takes off they want to part if it does not take off keep low profile and JV partner (Indian co.) will have face the tunes.
It is not good JV patners should be transparent fair in their dealings. somehow we get lured and fooled by people at the other end even so called big players here get trapped

2. Veena Shivanna - January 8, 2007

I know nothing to comment about this, but just made an entry 🙂 In case if Vijaya gives me a prize for commenting on every post of his. I just read it, so, this is to mark it 🙂


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