Cultural Problems During an International Joint Venture

Abstract

In the brace of globalization, the number of international joint ventures (IJVs) has shown a steep rise over the past two decades, with the aim of becoming more globally unified and increasing the range of exploitable complementary resources that increase the capacities, efficiencies, and core competencies of the IJV companies. The IJV companies face several issues related to intercultural differences and do a lot of maneuvers to ensure a successful venture. This chapter elaborates such issues and how the company resolves them through a phenomenological approach. The research objective is to investigate whether the success of joint venture can be attributed to the solutions of intercultural problems in congruence. During the research, eight employees from the top management were interviewed, who highlighted several intercultural problems and also discussed the solutions which could effectively resolve such issues. Further study has been recommended on an unsuccessful venture where the IJV failed due to such cultural problems to check the effectiveness of the solutions used.