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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.
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.
Previous research on the institutional structure of franchising networks (Bri- ley et al. 1991; Lutz 1995; Shane 1998; Lafontaine and Shaw 1999, 2005; - fuso 2002; Penard et al. 2003a,b) does not explain the governance structure of the franchising firm as an institutional entity that consists of two interrelated parts: Residual decision rights and ownership rights. The latter includes not only residual income rights of franchised outlets but also residual income rights of franchisor-owned outlets. Previous studies primarily examines the incentive, signalling and screening effects of fees, royalties and other contractual pro- sions from the point of view of organizational economics (see Dnes 1996 for a review) without taking into account the interactions between residual decision and residual income rights as interrelated parts of the governance structure. This paper fills this gap in the literature. According to the property rights view, de- sion rights should be allocated according to the distribution of intangible kno- edge assets between the franchisor and franchisee and ownership rights should be assigned according to the residual decision rights. Since ownership rights are diluted in franchising networks, the dilution of residual income rights of fr- chised outlets is compensated by residual income rights of company-owned o- lets. Under a dual ownership structure, company-owned outlets compensate the disincentive effect of low royalties for the franchisor, and low royalties strengthen the investment incentives for the franchisee.
Seminar paper from the year 2013 in the subject Business economics - Business Management, Corporate Governance, University of Bedfordshire, course: MSc International Business & Management, language: English, abstract: In the environment of Global Markets, the concept of International Joint Ventures (IJV) is appearing as a common phenomenon and there is a huge number of corporations who are successful in experiencing considerable growth and expansion through this strategic form of alliances. This report is made in accordance with context of cultural differences in an approach to investigate the phenomenon that to measure the degree of influence of cultural differences on the performance of International Joint Venture (IJV) at both context (National Level Culture & Organisational Level Culture). Cuplan (2002) described International Joint Venture as a process which involves the inclusion of two or more companies from different countries who come together on the single platform with the intension of contributing each other resources and capabilities in creating a separate Business Unit. The process involved in this strategic alliance can be evaluated and analysed through various ways but the best approach is Culpan (2002) approach, this approach viewed each stage from the context of decision making involved in it. From the perspective of this appropriate approach the process of International Joint Venture (IJV) is made up of four different phases (Initial, Formation, Operation and Outcome). The Joint Venture named Alcatel-TCL was also made with the intension of becoming Global Leader in the mobile handset manufacturing. The focus was more on the two aspects (Design and Technology). Moreover, the secondary focus was on the integration of four components (Development Targets, Management System, and Operational Decisions & Staff Treatment). But, after 8 months (17-May-2005) the Joint Ventured was dissolved and both companies had decided to carry on their operations on the Individual basis. Generally it has been realised that the cultural distance existed at the organisational level was the prominent cause of given Joint Venture dissolution. And within the organisational context, the difference existed among both companies in term of open vs. Closed system orientation was the only factor which made difficult for the Alcatel-TCL to sustain for a long period of time.
Organizational flirts and marriages alliances, mergers and acquisitions are dramatic examples of how soft cultures can produce hard facts of success or failure. Decisions born from human vanity can lead to destruction of human capital. The chapters selected by Ulijn, Duysters and Meijer illustrate the many facets of organizational family life for the scholar and, hopefully, for the decision-maker who considers another move. Geert Hofstede, author of Culture s Consequences This unique book focuses on the link between different types of culture (national, corporate, professional) and the success of strategic alliances, mergers and acquisitions. Over the past decades we have seen a significant increase in the number of strategic alliances, mergers and acquisitions. Despite this proliferation many recent studies have reported high failure rates. This failure is often attributed to cultural differences between partners, which has led to a growing body of literature on the subject. To date, most of these studies have focused on national and corporate culture, whereas this book also places particular emphasis on the importance of culture at the professional level. The authors clearly show that all three levels of culture may have a profound impact upon the ultimate success or failure of alliances, mergers and acquisitions. Researchers in the field of international business, strategic management, and strategic alliances, mergers and acquisitions will find this book to be of invaluable interest. Managers in multinational corporations and international business students should also not be without this important resource.
Total quality management (TQM), reengineering, the workplace of the twenty-first centuryâ€"the 1990s have brought a sense of urgency to organizations to change or face stagnation and decline, according to Enhancing Organizational Performance. Organizations are adopting popular management techniques, some scientific, some faddish, often without introducing them properly or adequately measuring the outcome. Enhancing Organizational Performance reviews the most popular current approaches to organizational changeâ€"total quality management, reengineering, and downsizingâ€"in terms of how they affect organizations and people, how performance improvements can be measured, and what questions remain to be answered by researchers. The committee explores how theory, doctrine, accepted wisdom, and personal experience have all served as sources for organization design. Alternative organization structures such as teams, specialist networks, associations, and virtual organizations are examined. Enhancing Organizational Performance looks at the influence of the organization's norms, values, and beliefsâ€"its cultureâ€"on people and their performance, identifying cultural "levers" available to organization leaders. And what is leadership? The committee sorts through a wealth of research to identify behaviors and skills related to leadership effectiveness. The volume examines techniques for developing these skills and suggests new competencies that will become required with globalization and other trends. Mergers, networks, alliances, coalitionsâ€"organizations are increasingly turning to new intra- and inter-organizational structures. Enhancing Organizational Performance discusses how organizations cooperate to maximize outcomes. The committee explores the changing missions of the U.S. Army as a case study that has relevance to any organization. Noting that a musical greeting card contains more computing power than existed in the entire world before 1950, the committee addresses the impact of new technologies on performance. With examples, insights, and practical criteria, Enhancing Organizational Performance clarifies the nature of organizations and the prospects for performance improvement. This book will be important to corporate leaders, executives, and managers; faculty and students in organizational performance and the social sciences; business journalists; researchers; and interested individuals.
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.
Challenging the common belief that conflict in groups and organizations should be prevented or resolved to maintain or enhance performance, Using Conflict in Organizations offers an alternative perspective by presenting the increasing knowledge on how conflict can enhance individual achievement, the quality of group decision-making and productivity in organizations. Part One provides a general framework which links conflict management to performance and shows how this relationship can be understood. The second and third parts develop and illustrate this framework in a series of thematic chapters. Part Two focuses on performance following intragroup conflict, covering topical areas such as dissent, groupthink a