Partner selection in international joint ventures

: factors for the selection of partners in IJVs

Abstract

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 to make the entry. The International Joint Ventures (IJV) are one of the major form of market entry mode selected by companies for this internationalization process, connecting with a local partner and using his resources to achieve successful entry. The partner selection is a primary factor for achieving success in establishing a JV, since that the high degree of failure and termination of relationships between companies come from an inappropriate choice of partner with lack of a proper due diligence and potential relationship problems. For this reason we seek to understand the most important factors for the selection of a partner in an IJV, based on a case study conducted in Sá Machado SA firm especially in its process of internationalization for the Angolan market. The factors encountered in the study are in agreement with other studies subjugated to the same theme, which define the knowledge and market access as primary factors, as well as financial / logistical support and a strong operational network. Regarding the factors focused on the relationship with the partner: trust, commitment and congruent goals are the major points highlighted as important in creating an IJV and essential factors for the success of the relationship.

Date of Award	23 Mar 2015
Original language	English
Awarding Institution	Universidade Católica Portuguesa
Supervisor	Susana Silva (Supervisor)