Joint Venture Efficiency through Skills Complementarity or by Reducing Transaction Costs?

Author:

Vargas-Hernández José G.1ORCID,Ioannis Antoniadis I.2,González-Armenta L.E.1

Affiliation:

1. University of Guadalajara, Mexico

2. Western Macedonia University of Applied Sciences, Greece

Abstract

This paper aims to examine the main strategies multinational companies implement to enter new markets, and more specifically emerging ones, by reviewing the determinants of the strategic choice between establishing a joint venture formed by a multinational and a local partner, and the merger/acquisition of a local firm. By reviewing the relevant literature, we explore the strategies that Multinational Enterprises (MNEs) follow to enter new markets in emerging economies. Finally we put the literature in test by presenting a case study of a clothing retail company that has been a platform for multinationals wishing to enter the market of Mexico.

Publisher

IGI Global

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