Ch 4 p 3 - IHRM and International Joint Ventures Four...

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IHRM AND INTERNATIONAL MERGERS AND ACQUISITIONS PROCESS OF ACCULTURATION •New Creation – Develop a new culture that fits the new organization - commonly the result of a greenfield operation. •Assimilation – Assign legitimacy to one culture and expect assimilation by members of the other culture – target firm will lose its identity. Common in hostile acquisitions or when there is an imbalance of power. IHRM and International Joint Ventures •In an international joint venture (IJV), a new legal entity is created defined as •“A separate legal organizational entity representing the partial holdings of two or more parent firms, in which the headquarters of at least one is located outside the country of operation of the joint venture.” •This entity is subject to the joint control of its parent firms, each of which is economically and legally independent of the other •The central challenge in an IJV is to create a new firm, with all its dimensions, culture, and practices and this occurs in four stages
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Unformatted text preview: IHRM and International Joint Ventures Four Stages of the IJV Process 1) Formation: The partnership stage 2) Development: Create the IJV itself 3) Implementation: Staff The IJV 4) Advancement: Sustain the IJV IHRM AND INTERNATIONAL JOINT VENTURES FOUR STAGES OF THE IJV PROCESS Stage 1: Formation Identify reasons for the alliance and set objectives Identify and evaluate potential alliance partners Negotiate the arrangement Stage 2: Development Establish the organizational structure Select locations for the operations Recruit and retain key talent IHRM AND INTERNATIONAL JOINT VENTURES FOUR STAGES OF THE IJV PROCESS Stage 3: Implementation Establish the vision, mission, values, and strategy Translate policies into managerial practices and behaviors Staff and manage the new organization Stage 4: Advancement Monitor the organizational culture Transfer knowledge throughout the organization (and back to parent companies) Promote continuous learning...
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Ch 4 p 3 - IHRM and International Joint Ventures Four...

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