Ch4 p4 - IJV. Key lessons learned from successful joint...

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IHRM and International Joint Ventures Stages One and Two: Formation and Development of the IJV •Specific motives include: •Gain knowledge from the joint venture partner •Gain access to partner’s product technology, knowledge, or methods of manufacturing •Satisfy host government requirements and insistence •Gain increased economies of scale without more direct investment •Gain local market image and channel access •Obtain vital raw materials or technology •Spread the risks with the foreign partners •The high failure rate of IJV is due to managerial complexity and lack of sophisticated IHRM capabilities including: IHRM and International Joint Ventures Stages One and Two: Formation and Development of the IJV •Inadequate due diligence •Poor selection of partner(s) – Culture Clash •Lack of agreement of goals and objectives •Lack of JV management experience •Misdiagnoses of the capabilities of their partners •IHRM plays a critical role ensuring the successful implementation of the
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Unformatted text preview: IJV. Key lessons learned from successful joint ventures include: IHRM AND INTERNATIONAL JOINT VENTURES STAGE THREE: IMPLEMENTATION OF THE IJV •When national and corporate cultures are blended, partners need to spend time building trust; understanding and accommodating each others’ interests •Job design can be enhanced when the partners are willing to learn from one another •Recruitment and staffing policies should be well-defined in the early stages of the venture •HR systems need to reward knowledge sharing IHRM and International Joint Ventures Stage Four: Advancement of the IJV •Since one of the main reasons for creating IJVs involves the desire of the partners to learn from each other, this becomes one of the central foci for determining the success or failure of an IJV •If learning is taking place, the partners must develop ways to ensure the transfer of new knowledge to the partners, both within the IJV, itself, as well to the parent firms, outside the IJV...
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This note was uploaded on 02/06/2012 for the course HRM 533:315 taught by Professor Castolano during the Spring '12 term at Rutgers.

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Ch4 p4 - IJV. Key lessons learned from successful joint...

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