Partner selection in international joint ventures: factors for the selection of partners in IJVs

The growing trend for companies to focus on geographical diversification implies a decisional process of how to face the opening of new markets and how best to make this entry. International Joint Ventures (IJV) are one of the major forms of market entry selected by companies for this internationalisation process, connecting with a local partner and using its resources to achieve successful entry. The partner selection is a primary factor for achieving success in establishing a joint venture (JV), since the high failure rate of relationships between companies is often due to an inappropriate choice of partner with a lack of proper due diligence and the potential for relationship problems. Trust, commitment, and congruent goals are highlighted as being important factors in the relationship with a partner when creating an IJV, and essential for the success of the relationship. This paper attempts to systematise the most relevant decisions concerning the international partner selection process.