Partner appraisal and selection model for international joint venture companies in Iran Automotive industry

Document Type : Original Article

Authors

Payam Noor University

Abstract

Selecting a partner in joint venture companies is one of the most important critical success factors for companies who are deploying growth and development strategy through joint venture companies and is one of the main concerns of researchers. Partner selection requires applying a scientific and specific algorithm to recognize all the variables and their interactions to select the best choice among the partner candidates to make a joint. In this research a model is extracted to help in selecting a foriegn partner in joint venturing. The research consists of two main parts. In the first part to find the relevant variables which affect the partner selection, a literature review and libraray studies is done and 239 variables are extracted, then by using Delphi technique and run it several times through distributing a questionary and individual interviews, 14 main variables which are influencing on the partner selection in Iran automotive industry are recognized. In second part, through applying Interpretive Structural Modeling technique (ISM) the main model is established and by the experts viewpoints and applying two techniques, Analytical Network Process (ANP), and Decision-making and Evaluation Labarotory (Dimatel), the priorities of the variables is evaluated and the variables’ weights in the final model is calculated.

References

  1. Al-Khalifa, Ali K.; Peterson, S. Eggert (1999); The partner selection process in international joint ventures; European Journal of Marketing; Vol.33; No.11/12; Pp. 1064-1081
  2. Arino, A.; De la Tore, J. (1998); Learning from failure: Towards an evolutionary model of collaborative ventures; Organization Science; Vol.9; No.3; Pp.306–325
  3. Beamish, P. W.; Lupton, N. C. (2016); Cooperative strategies in international business and management: Reflections on the past 50 years and future directions; Journal of World Business; Vol.51; Issue 1; Pp.163-175
  4. Beamish, P.W. (1987); Joint ventures in LDCs: Partner selection and performance; Management International Review; Vol.27; Pp.23–37
  5. Beamish, P.; Banks, J. (1987); Equity joint ventures and the Theory of the Multinational Enterprise; Journal o f International Business Studies; Vol. 18; Pp.1-16
  6. Chand, mohinder; Anastasia, A. katou (2012); Strategic determinants for the selection of partner alliances in the Indian tour operator industry: a cross- national study; Journal of world business; No. 47; Pp. 167-177
  7. Chen, Sheu Hua; Wang, p.w.; Chien M. C.; Hong, T. lee (2010); An analytic hierarchy process approach with linguistic variables for selection of an R&D strategic alliance partner; Computers & industrial engineering; Vol.58; Pp.178-287
  8. Coombs, J. E.; Deeds, D. L. (2000); International alliances as sources of capital: evidence from the biotechnology industry; Journal of High Technology Management Research; Vol.11; Pp.235–253
  9. Coviello, N. E. (2006); The network dynamics of international new ventures; Journal of International Business Study; Vol.37; Pp.713–731
  10. Crispim, J. A.; De Sousa, J. P. (2010); Partner selection in virtual enterprises; International Journal of Production Research; Vol.48; No.3; Pp.683–707
  11. Cullen, J. B.; Johnson, J. L.; Sakano, T. (2000); Success through commitment and trust: The soft side of strategic alliance management; Journal of World Business; Vol.35; No.3; Pp.223-240
  12. Cummings, Jeffrey L.; Holmberg, Stevan R. (2012); Best-fit Alliance Partners: The Use of Critical Success Factors in a Comprehensive Partner Selection Process; Long Range Planning; Vol.45; Pp.136-159
  13. Dacin, M. T.; Hitt, M. A.; Levitas, E. (1997); Selecting partners for successful international alliances: Examination of US and Korean Firms; Journal of World Business; Vol.32; No.1; Pp.3–16
  14. Dacin, M. T.; Oliver, C.; J. Roy (2007); The legitimacy of strategic alliances: an institutional perspective; Strategic Management Journal; Vol.28; Pp.169-187
  15. De Faria, Pedro; Lima, Francisco; Santos, Rui (2010); Cooperation in innovation activities: The importance of partners; Research Policy; Vol.39; Pp.1082–1092
  16. Di-Maggio, P.; Powell, W. W. (1983); The iron cage revisited: Institutional isomorphism and collective rationality in organizational fields; American Sociological Review; Vol.48; Pp.147–160
  17. Ding, Ji-Feng; Liang, Gin-Shuh (2005); Using fuzzy MCDM to select partners of strategic alliances for liner shipping; Information Sciences; Vol.173; Pp.197–225
  18. Ding, Rong; Dekker, Henri C.; Groot, Tom (2013). Risk, partner selection and contractual control in inter firm relationships; Management Accounting Research; Vol.24; issue 2; Pp.140–155
  19. Dong, Li; Glaister, Keith W. (2006); Motives and partner selection criteria in international strategic alliances: perspectives of Chinese firms; International business review; Vol.15; Pp.577-600
  20. Duisters, D.; Duysters, G.; De Man, Ard Pieter (2007); A Study into the Role of a Partner Selection Process in Alliance Capability Building; www.pucsp.br/icim/ingles/downloads/pdf_proceedings_2008/73.pdf
  21. Duisters, D.; Duysters, G.; De Man, A. P. (2011); The partner selection process: steps, effectiveness, governance; International Journal of Strategic Business Alliances; Vol.2; No.1/2; Pp.7–25
  22. Elmuti, D.; Kathawala, Y. (2001); An Overview of Strategic Alliances; Journal of Management Decision; Vol.39; No.3; Pp.205- 217
  23. Faulkner, D.; McGee, J. (1994); Success and Failure of International Strategic Alliances: Evidence from In-depth Case Studies in: Thomas, H.; O'neal, D.; Ghertman M; (Eds.) (1997) Strategy, Structure and Style; Pp. 183-200, Chichester: John Wiley
  24. Feng, Bo; Fan, Zhi-Ping; Ma, Jian (2010); A method for partner selection of co development alliances using individual and collaborative utilities; International Journal of Production Economics; Vol.124; Pp.159–170
  25. Fiol, C. M.; Lyles, M. A. (1985); Organizational learning; Academy of Management Review; Vol.10; No.4; Pp.803–813
  26. Franco, Mario; Haase, Heiko (2015); Interfirm Alliances: A Taxonomy for SMEs; Long Range Planning; Vol.48; Issue 3; Pp. 168-181
  27. Geringer, J. M. (1991); Strategic determinants of partner selection criteria in inter-national joint ventures; Journal of International Business Studies; Vol.22; No.1; Pp. 41–54
  28. Geum, Youngjung; Lee, Sungjoo; Yoon, Byungun; Park, Yongtae (2013); Identifying and evaluating strategic partners for collaborative R&D: Index-based approach using patents and publications; Technovation; Vol.33; Pp.211–224
  29. Gibson, D.; Smilor, R. (1992); Technology Transfer in Consortia and Strategic Alliances; Rowman & Littlefield Publishers; Inc.; Lanham, MD
  30. Gilroy, B. (1993); Networking in Multinational Enterprises: The Importance of Strategic Alliances; University of South Carolina; Columbia; SC
  31. Glaister, Keith W.; Buckley, Peter J. (1997); Task-related and Partner-related Selection Criteria in UK International Joint Ventures; British Journal of Management; Vol.8; Pp.199–222
  32. Gomes-Casseres, B. (1989); Ownership Structure of Foreign Subsidiaries: Theory and Evidence; Journal of Economic Behavior and Organization; Vol.11; Pp. 1-25
  33. Gundlach, G.; Murphy, P. (1993); Ethical and legal foundations of relational marketing exchanges; Journal of Marketing; Vol.57; Pp.35-46
  34. Hajidimitriou, Yannis; Georgiou, Andreas (2002); A goal programming model for partner selection decisions in international joint ventures; European Journal of Operational Research; Vol.138; Pp. 649–662
  35. Hamel, G. (1992); Competition for competence and inter-partner learning within international strategic alliances; Strategic Management Journal; Vol.12; Pp.83-103
  36. Haskell, Nancy; Veilleux, Sophie; Beliveau, Donald (2016); Functional and contextual dimensions of INVs’alliance partner selection; Journal of International Entrepreneurship; Vol.14; Issue 4; Pp.483-512
  37. Ho, S. Ping; Wu, H. L.; Lin, E. (2009); Model for partner selection in global projects: A game theory analysis; Proceeding of the 2009 LEAD Specialty conference: global governance in project organizations; South Lake Tahoe; CA
  38. Holmberg, Stevan; R. Cummings; Jeffrey L. (2009); Building Successful Strategic Alliances: Strategic Process and Analytical Tool for Selecting Partner Industries and Firms; Long Range Planning; Vol.42; Pp. 164-193
  39. Huang, Jih-Jeng; Et. al. (2010); A multi objective programming model for partner selection-perspectives of objective synergies and resource allocations; Expert Systems with Applications; No.37; Pp.3530–3536
  40. Hyun, Jae Hoon; Ahn, Sun Yeop (2013); Host Country Perspectives on Partner Selection Criteria for the Success of International Joint Ventures: An Empirical Survey of Korean Firms; Proceedings of 24th International Business Research Conference; Planet Hollywood; Las Vegas; USA; ISBN: 978-1-922069-37-5
  41. Kale, P.; Singh, H; Perlmutter, H. (2000); Learning and protection of proprietary assets in strategic alliances: Building relational capital; Strategic Management Journal; Vol.21; No.3; Pp.217–237
  42. Lajara, B. M.; Lillo, F. G; Sempere, V. S. (2002) ; Human resources management: a success and failure factor in strategic alliances; Employee relations; Vol.25; No.1; Pp.61-80
  43. Li, Dan; Ferreira, Manuel Portugal (2008); Partner selection for international strategic alliances in emerging economies; Scandinavian Journal of Management; Vol.24; Pp.308–319
  44. Lin, Chun-Wei R.; Chen, Hong-Yi S. (2004); A fuzzy strategic alliance selection framework for supply chain partnering under limited evaluation resources; Computers in Industry; Vol.55; Pp.159–179
  45. Lin, I. Chen; Chen, Xiao Hong (2012); The selection and assessment of strategic alliances on the hypermarket in Taiwan; The International Journal of Organizational Innovation; Vol.4; No.3; Pp.129-152
  46. Liou, James J. H. (2012); Developing an integrated model for the selection of strategic alliance partners in the airline industry; Knowledge-Based Systems; No.28; Pp. 59–67
  47. Madhok, A. (1995); Revisiting multinational firm’s tolerance for joint venture: A trust based approach; Journal of International Business Studies; Vol.26; No.1; Pp.117-137
  48. Mahoney, D.; Trigg, M.; Griffin, R.; Putsay, M. (2001); International Business; A managerial perspective (2nd ed.); Pearson Education; Australia
  49. Mauri, A. (1993); The Influence of Technology on Strategic Alliances: An Application of the Utterback and Abernathy Model of Process and Product Innovations; Proceedings; Academy of Management Best Papers Section
  50. McCutcheon, David; Stuart, F. Ian. (2000); Issues in the choice of supplier alliance partners; Journal of Operations Management; Vol.18; Pp.279–301
  51. Meschi, Pierre-Xavier; Norheim-Hansen, Anne; Riccio, Edson Luiz (2016); Match-Making in International Joint Ventures in Emerging Economies: Aligning Asymmetric Financial Strength and Equity Stake; Management International Review; Vol.12; Issue 67; Pp.1-30
  52. Murphy A.; Kok G. (2000); Managing differences; In: 7th EFQM Conference; April 15–19
  53. Nielsen, B. (2002); How do firms select their partner for international strategic alliances? An empirical investigation of the drivers of international strategic alliance formation; Working paper; http://openarchive.cbs.dk/cbsweb/handle/10398/6539
  54. Nielsen, Bo Bernhard; Gudergan, Siegfried (2012); Exploration and exploitation fit and performance in international strategic alliances; International Business Review; Vol.21; issue 4; Pp.558-574
  55. Niu, S. H.; Ong, S. K.; Nee, A. Y. C. (2012); An enhanced ant colony optimizer for multi-attribute partner selection in virtual enterprises; International Journal of Production Research; Vol.50; No.8; Pp. 2286–2303
  56. Owens & et al. (2012); Partner identification and selection of joint ventures in international retailing; The Service Industries Journal; Vol.32; No.3; Pp.383–410
  57. Pan, Frank F. C. (2010); On Partner Selection Factors and Ventures Performance of International Alliance. In Book: Global Operations Management; ISBN: 978-1-60876-355-9; Editor: Lee R. Hockley; Nova Science Publishers, Inc.; Pp. 135-163
  58. Parkhe, A. (1993); Strategic alliance structuring: a game theoretic and transaction cost examination of inter firm cooperation; Academy of Management Journal; Vol.36; Pp. 794-829
  59. Rahman Seresht, Hossein; Bashokuh, Mohammad; Pahlavani Qomi, Masumeh (2009); The effective factors on international joint ventures success (case study: Research Center of Iran Khodro Co.); Journal of Business Management; Issue 1; No.3; Pp.55-70
  60. Ravanshadnia, M.; Abasian, H. R.; Rajaie, H. (2010); Selecting Engineering Partner for EPC Projects using a Fuzzy AHP Approach; International Journal of Management Science and Engineering Management; Vol.5; No.4; Pp.277-283
  61. Ren, Jun; Yusuf, Yahya; Y. Burns; D. Neil (2005); Agile Partner Selection: A Hierarchical Model and Empirical Investigation; International Journal of Information and System Sciences; Vol.1; No.1; Pp.1-22
  62. Ring, P.; Van de Ven, A. (1994); Developmental processes of cooperative inter organizational relationships; Academy o f Management Journal; Vol. 19; Pp.90-118
  63. Rumpunen, Sami (2011); Partner Selection for International Joint Venture Operations; Phd thesis; University of Vaasa; Faculty of Business Studies; Department of Marketing; Finland
  64. Saaty, T.L. (2002); Decision Making with the Analytic Hierarchy Process; Sceintica; Vol.9; No.3; Pp. 215-229
  65. Sahebi, Hadi; Nickel, Stefan; Ashayeri, Jalal (2015); Joint venture formation and partner selection in upstream crude oil section: goal programming application; International Journal of Production Research; Vol.53; No.10; Pp.3047–3061
  66. Shah, Kalim U. (2015); Choice and control of international joint venture partners to improve corporate environmental performance; Journal of Cleaner Production; Vol.89; Pp.32-40
  67. Shahanaghi, Kamran; Yavarian, Hossein (2010); MODM-MCDM Approach to Partner Selection in Auto Industry A Case Study on Mazda of Iran; International Journal of Business and Management; Vol.5; No.11; Pp.183-190
  68. Slocum, J.; Lei, D. (1992); Global Strategy, Alliances and Initiatives; California management Review; Vol.35; No.1; Pp.81-97
  69. Solesvik, M.; Encheva, S. (2010); Partner selection for inter firm collaboration in ship design; Industrial Management & Data Systems; Vol.110; No.5; Pp.701-717
  70. Solesvik, M.; Westhead, P. (2010); Partner selection for strategic alliances: case study insights from the maritime industry; Industrial Management & Data Systems; Vol. 110; No.6; Pp. 841-860
  71. Theurl, T. (2010); Die Kooperation von Unternehmen: Facetten der Dynamik’; In: Ahlert, D.; Ahlert M. (Eds.); Pp.313-343
  72. Tomlinson, J. W. C.; Thompson, M. (1977); A study of Canadian joint ventures in Mexico; working paper; University of British Columbia; Vancouver
  73. Tomlinson, J. (1970); The Joint Venture Process in International Business: India and Pakistan; Cambridge; MA: MIT Press
  74. Tsang. E. W. K. (2000); Transaction cost and resource-based explanations of joint ventures: a comparison and synthesis; Organization studies; Vol.21; No.1; Pp.215-242
  75. Twardy, Danielle (2008); Partner selection: A source of alliance success; Eindhoven University of Technology and Zuyd University of Applied Science on behalf of Alliance Best Practice
  76. Ulas, Dilber (2005); Motives and Partner Selection Criteria for Formulation of IJVs in High-technology Industries in Turkey; Problems and Perspectives in Management; Vol.3
  77. Wu, W. Y.; Shih, H. A.; Chan, H. C. (2009); The Analytic Network Process for partner selection criteria in strategic alliances; Expert Systems with Applications; Vol.36; Pp. 4646-4653
  78. Xu J. et al. (2014); Partner Selecting, Partnership and Alliance Performance in Alliance Development Process; Proceedings of the Seventh International Conference on Management Science and Engineering Management; Volume 1; Lecture Notes in Electrical Engineering 241; DOI: 10.1007/978-3-642-40078-0_43; Springer-Verlag Berlin Heidelberg
  79. Young, S.; Hamill, J.; Wheeler, C.; Davies, J. R. (1989); International Market Entry and Development; Hemel Hempstead: Harvester Wheatsheaf
  80. Zhang, Wuyi; Yingjie, Cheng (2011); Research on Knowledge Partner of the Enterprise Selection and Evaluation with BP Neural Network; ICCIC; Part III; CCIS 233; Springer-Verlag Berlin Heidelberg; Pp.74–80

Files

History

  • Receive Date: 01 November 2017
  • Revise Date: 19 November 2024
  • Accept Date: 31 December 2020

Share

How to cite

Statistics