Abstract
Both successful Joint Ventures (JVs) and failed investments have been reported recently. There are numerous studies that address conflicts between different cultures, traditions, as well as value systems, but only a few of them focuses on identifying the key factors and their managerial implications that the foreign investors need to successfully enter into an emerging market, such as Malaysia.
The aim of this study is to investigate the factors that are critical to the success of the Australian-Malaysian joint ventures (JVs). Using intensive interviewing of local and foreign managers in 11 Australian-Malaysian IJVs from the construction, services and manufacturing industries the study found that factors fostering trust, information sharing and cultural understanding among IJV participants improve their chances for success. Factors that decrease participants' coordination costs also improve success rates. Other success factors include goal convergence and synergy, effective governance and geographic proximity.
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