Motives of international joint venture formation in India
: An assessment through the resource based approach

    Student thesis: Professional Doctorate - CDU


    Many aspects of international joint ventures have received the consistent attention of researchers and scholars. There is a long tradition to study the 'motives' of IJV formation in different country contexts using different theoretical perspectives including transaction cost analysis and strategic management approach.

    Despite many recent studies, some vital aspects of IJV motives remain unanswered. There is limited empirical evidence to test the propositions that (a) IJV motives are different for developed-developing country parent firms, (b) motives of developed-developing country firms complement each other and, (c) structural characteristics have an impact on the importance of motives. Given the limitations of cumulative research effort and the fact that the role and importance of IJVs is increasing in international business, fresh research effort is essential to overcome the gaps in the understanding of IJV motives. While these concerns are global, these are particularly relevant for developing countries.

    The primary objective of this thesis is to investigate these issues using the resource based view (RBV) of the firm. The IJV remains the most popular form of governance structure in India by foreign firms despite the abolition of the legislative necessity for almost a decade. A significant proportion of foreign investment in India continues through joint ventures. Most aspects of IJV including IJV motives in India remain a matter of conjecture.

    This thesis assesses the motives of IJV formation by conducting a cross-sectional survey of Indian and foreign organization operating in India. The empirical results of the RBV approach shed new light on the issues of IJV parents' specific resource seeking motives. It provides evidence that motives of IJV formation in India are different from the general propositions made about developing countries. The research highlights the role of structural differences of IJV parent firms in determining the importance of IJV motives. It also isolates the tangible and intangible resource-seeking motives for different IJV parent firms in India.

    Drawing on the evidence gathered, the thesis goes to argue that it is necessary to review the issue of IJV motives generally and also in the Indian context. With the rapidly changing environment of global investment, it is high time that IJV parent firms consider the role of specific resources as a means of delivering competitive advantage.

    Note: Please note that Appendix B to J: summary tables used in this thesis are based on statistical output and parametric tests performed with SPSS version 11.00. Details of the output are available in CD ROM only.
    Date of AwardSept 2004
    Original languageEnglish
    SupervisorPascal Tremblay (Supervisor)

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