Thesis: International Market Entry through Joint Venture

Sample Thesis Paper

When considering joint venture as an option for market entry in international business expansion, it is important to realize that context of the joint venture and the frequency of interactions between the joint venture parties plays a key role. Institutional factors such as home and host government departments and regulations can be expected to play an intervening role that can go as far as steering the joint venture process out of the hands of the joint venture parties’ altogether (Luo 1999). In addition, political instability and projected political circumstances can serve to increase the volatility of the joint venture process. A highly imperative factor in this regard is the factor of culture.

The cultural differences between joint venture parties can play an exogenous role in the establishment of the outcomes of the joint ventures. However, most of these factors can be brought into control by making use of the mechanisms provided by contract. The process of joint venture, if properly carried out, serves to provide protection against the variability of the factors mentioned above by allowing the negotiators to be subjected to what can be adequately referred to as an institutionalized mechanism (Luo 1999). The adequate use of this institutionalized mechanism allows the organization to make use of opportunities and to reduce risks from threats. The need for optimum usage or resources and information during an expansion leaves little room for mistakes or misusage and the process of joint venture can serve to ensure that the organization carrying out the expansion does not fall victim to exuberance in resource and information utilization. Carrying out a joint venture allows the organization to acquire stakeholders in the market into which the expansion is being carried out, thereby ensuring that the strategies and initiatives being carried out by the expanding organization remain confidential until the expanding business is ready and willing to reveal them.

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