Discussion paper 

The study reported here the concentrates on a particular form of international corporate entry in developing countries: cross-border joint venture(JVs). Although offering a variety of positive incentives, ranging in principle from the reduction of financial exposure to the acquisition of complementary knowledge and skills. JVs have had a relatively high failure rate. This study probes why this record seems to be true, and details the types of problems that rises in negotiating JV agreements and later, in operating the JV itself.

The central conclusion of the study is that managements often fail to remember that JVs are dynamic relationships where the basis for the incorporate marriage can change considerably over time. Both sides need to sustain comparative advantages in the relationship, the absence of which, on either side, will cause the JV to be less successful or, at the extreme, to fail. While cultural and personal factors can clearly be important to success as well, they are less critical than the maintenance of organizational complementarities between the two or more corporate partners.  

Includes bibliographical references, illustrations