Failure of an International Joint Venture: Implications for the India Enthusiasts

Abstract

‘Joint Ventures are fanned out of choice a11d not due to regulatory and policy requirements, according to 81% of the respondents to a FICCI study’, Hindustan Times, New Delhi, August 17, 2001

The paper analyses failure of an international joint venture (IJV) in India, which the Indian media highlighted as an icon of the internationalization of Indian industries. IJVs are deemed to be an excellent mode to penetrate overseas market by international aspirants. Although their present failure rate is estimated between 30 to 60% , the enthusiasm for forging IJVs in India is still undiluted. The paper surveys current literature in respect of their importance and of the reasons for which they break-up. Analyzing the break up of an IJV between Timex (USA) and Titan Industries (India) through a conceptual framework, the paper draws implications that might come handy to the IJV enthusiasts in India.