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Role, Motivation, and Performance of International Joint Ventures in Slovakia

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Value Creation in International Business

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Abstract

A joint venture is “a contractual arrangement that creates a separate legal entity in which the parent firms hold ownership interests under conditions and provisions that are specified by a legal document” (Murray and Siehl 1989). According to Harrigan (1985), joint venture is formed by “separate entities with two or more active businesses as partners.” Gomes-Caseres (1987) understands a joint venture as “a subsidiary in which the multinational enterprise owns 5 percent to 95 percent of equity.” The equity can act as a governance mechanism (Brouthers and Hennart 2007). A joint venture is “an agreement by two or more parties to form a single entity to undertake a certain project. Each of the businesses has an equity stake in the individual business and share revenues, expenses and profits” (Išoraité 2009). A joint venture is also “a fast and effective way to acquire the missing knowledge that partners require to innovate” (Anderson et al. 2011). A joint venture is not expected to have indefinite existence. Its instability might be measured by unexpected termination via dissolution, sell-off, or acquisition (Park and Ungson 1997). Contractor and Lorange (2002) point out that a joint venture is a separate entity providing risks and rewards for the partners.

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Author information

Authors and Affiliations

  1. School of Management/Vysoka skola manazmentu, Panónska 17, 851 04, Bratislava, Slovakia

    Sonia Ferencikova

  2. Ministerstvo hospodarstva SR, Mierova 19, 821 05, Bratislava, Slovakia

    Tatiana Hluskova

Authors
  1. Sonia Ferencikova
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  2. Tatiana Hluskova
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Correspondence to Sonia Ferencikova .

Editor information

Editors and Affiliations

  1. Department of Business and Management, Aalborg University, Aalborg, Denmark

    Svetla Marinova

  2. Department of Marketing, University of Vaasa, Vaasa, Finland

    Jorma Larimo

  3. Turku Sch of Economics, Univ of Turku, Turun Yliopisto, Finland

    Niina Nummela

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Ferencikova, S., Hluskova, T. (2017). Role, Motivation, and Performance of International Joint Ventures in Slovakia. In: Marinova, S., Larimo, J., Nummela, N. (eds) Value Creation in International Business. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-319-30803-6_4

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