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International Joint Ventures (IJV) capitalise on localised skills, knowledge and capabilities. Moreover, the internationalisation of markets offers scope to innovate, develop and market new products benefiting from international collaborations. Nonetheless, some IJV fail and many do not achieve satisfactory performance. One reason proposed is cultural differences, most often the differences in partners' national cultures or differences between corporate. We examine 66 Israeli IJV to establish the impact of national and organisational cultures. We found that neither organisational nor national culture had much impact on performance or the perception of performance. However, trust seems to play an important mediating role.
Project Report from the year 2013 in the subject Business economics - Business Management, Corporate Governance, University of Bedfordshire, course: International Business & Management, language: English, abstract: In the Global Market, Internarional Joint Ventures (IJV) are becoming prevalent phenomeno and many multination companies have managed to experience considerable growth by making alliances (such as Joint Ventures). There are several factors which needed to be controlled carefully, otherwise it would be resulted in weaken the performance of the specified IJV. It has been estimated that about 37-70 percent of IJV are reported to experience the performance problems incurred due to the cultural differences and thus leaded the specified ventures towards the costly Culpan (2002) explained International Joint Venture (IJV) as the process which includes two or more companiess belong to different countries to collaborate together.The decision to decide wheather or not to make a joint ventures included four different stages (Initial, Formation, Operation & Outcome). There are two kinds of cultures which directly makes an impact on the Joint Venture. The first one is the organisational culture and the second type of culture is the national culture. Pothukuchi, et al. (2002) stated that the problem arises in IJV is because of significant Impact of the national culture upon the behavioral and management system which then directed towards conflicts. Same case is observed in the organisational culture as well where any differnece or dispute can cause conflict and also can destablise the Joint Venture’s performance or progress. The case study of Sony Ericsson also fallows the same approach of the Joint Venture as it was collaboration between two multinational companies (Sony & Ericsson) who were coming together with intention of single corporate which could not be possible for both companies to accomplish on the individual basis. It has been found out that the organisational cultural difference has negative impact on the performance of the International Joint Ventures (IJV). On the other hand, national cultural difference can pose either positive or negative impact but the intensity of that difference is not much aggressive. The emphasis of companies engaged in International Joint Venture on the factors which would be resulted in overcoming national cultural difference problems and also on developing the management which would be acceptable for both partners to adopt and implement could contribute extensively to the success of International Joint Ventures.
Bachelor Thesis from the year 2017 in the subject Business economics - General, grade: 2,0, University of Tubingen (International Business), language: English, abstract: This thesis explores the significance of organizational justice in international joint ventures (IJV), from an organizational as well as a cultural perspective. The majority of studies on organizational justice were conducted within organizations and in a mono-cultural context. However, in the face of increasing globalization and growing popularity of IJV activities, the study of fairness in a cross-cultural context becomes more and more important. Therefore, this thesis seeks to bring organizational justice into relation with culture by using an IJV context, and serve as a starting point for further research in this area. The three dimensions of justice, distributive, procedural, and interactional justice, positively affect IJV performance through their distinct and interactive effects. In this setting, culture has a moderating influence on justice perceptions, which can be assessed though bringing justice perspectives together with Hofstede’s cultural dimensions. Effects on fairness perceptions in different cultures can be outlined and contrasted. On this basis, implications for theoretical discussion and managerial practice in cross-cultural joint ventures can be derived. Together with further research, managers could use these findings to develop transcultural justice competencies. To decide which of the new job applicants is the right one for the job vacancy, the human resource manager in figure 1.1 gives everyone the same task to fulfil. Without regard to the personal qualities of the dog, seal, fish, elephant, penguin, monkey and bird, he decides that everyone of them should climb that tree and compete against each other. From his perspective this might be a fair procedure, as he doesn’t make exceptions and treats everyone equally. The monkey and bird might also be fine with the task and might not care about an unfair competition. The elephant and fish, however, are very likely to perceive the situation as unjust and might voice complaints against the human resource manager. As this example shows, fairness often lies in the eye of the beholder and depends on everyone’s individual perspective.
Seminar paper from the year 2012 in the subject Business economics - Business Management, Corporate Governance, grade: 1,3, Berlin School of Economics and Law, course: Work Business and Society, language: English, abstract: This term paper explores the effect of culture on international business. In order to do so, it first evaluates the influence of national culture and then the influence of corporate culture on international management. In the end it presents and analyzes a new framework which argues that these two types of culture interrelate and that both shape international management practices. In 2010 Wal-Mart Inc. has been the world’s top retailer with revenues of US$ mil 405,046. However, they have never managed to establish Wal-Mart Germany since they have entered the market in late 1997. They left the market with huge losses in 2006. “In Germany, analysts say, Wal-Mart never got traction in a market characterized by unrelenting price competition, well-established discounters and the cultural resistance of German shoppers to hypermarkets, which sell fresh vegetables a few aisles away from lawn mowers.”
As in previous editions of this popular text on cross-cultural management, students will find here an invaluable guide to key management theories, linked to practical examples from all round the world. The book's key distinctive feature remains its truly international profile, with current examples from the US, Europe, Asia and new perspectives in this edition from other regions. Discussion of cross-cultural models is updated by including the 'crossvergence' framework developed during the 1990s, as well as the latest new research on organizational culture Coverage of how and to what extent cultural variation affects the implementation of e-technology at the workplace (esp. in multinational subsidiaries) New material on the management of marketing/sales teams across borders and implications of cultural differences for expatriate managers. The addition of several new cases, from the Middle East, Latin America and Africa as well as new cases in in Asia. The 4th edition retains the special appendix on how to write a successful dissertaion or project which makes this a useful text for both MBA and advanced undergraduate courses.
Israeli Business Culture elaborates on the various Israeli cultural characteristics. It provides tips for improving communication skills while doing business with Israelis. It also explains how we Israelis became a society in which our dress and behavior are informal, and our manner of speaking has almost no filters between thought and the spoken word. It explores why we are an entrepreneurial society of ambitious people who take risks on the road to success. Furthermore, we have a tendency to improvise and think outside the box, and more. Author Osnat Lautman, an Israeli organizational consultant and expert in cross-cultural communication, uses the letters in the word "Israeli" as a model to elaborate on the major characteristics of Israeli business culture: I Informal S Straightforward R Risk-taking A Ambitious E Entrepreneurial L Loud I Improvisational Everyone wants to understand and trust their business colleagues and associates. For those working with Israelis, gaining knowledge of the origins and characteristics of their business culture will enhance communication, which is the cornerstone of profitable business in our diverse, global economy. From this enjoyable book, based on extensive academic research and practical experience alike, you will learn how to recognize these characteristics when doing business with Israelis. You will gain tools for successful intercultural business communication and find clear, helpful recommendations on working together to achieve business success.
Based on research carried out in the subsidiaries of a leading global company, Lafarge, in the contrasting cultural environments of China, the United States, France and Jordan, Philippe d'Iribarne looks at how a Western company can and should manage its cross-cultural, corporate values in its foreign subsidiaries and whether these values are universal or only Western specific.
Seminar paper from the year 2011 in the subject Business economics - Business Management, Corporate Governance, grade: A, University of Newcastle, language: English, abstract: This report is about the analyses of organizational culture and the issues related to cultural diversity in an international business. Here, we analysed the challenges encounter by an organization while entering into the international business. The report explains the major factor responsible for the cultural differences and the strategies adopted by international organization to deal with these challenges. In the concluding part, we have summarized the importance of leadership and feedback mechanism in the organization to ensure smooth cross cultural communication in the organization. A widespread numbers of references are being used during the preparation of reports, available at the end.