Article Review on Joint Ventures
Sayyed Husein, R., & Sayyed Husein, S. (2013). The future of joint ventures: A literature review. International Journal Of Business Management Studies.
The reason for choosing to review the article is because of its objective of investigating the joint venture’s future and their importance’s to any organization for their sustainability. The report also has reviewed previous studies of joint ventures and their findings, thus helping in the understanding of all the perspectives concerning joint ventures. The article also helps in investigating the future of joint ventures and the limitations that may hinder the prospect of joint ventures.
Definition
A joint venture is defined as an agreement in the business where several partners agree to marshal their resources together in order to achieve a set task. The partners in a joint venture are responsible for any profit, loss, or cost that is associated with the project they want to achieve. The participants in a joint venture are separate from the entity; therefore, the venture is a separate entity.
Importance of Strategic Management in Joint Ventures
It is important to focus on strategic management when discussing the future of joint ventures. All organizations are looking for ways in which they can remain sustainable. The organizations’ strength, weaknesses, and opportunities are considered as the critical tools that guarantee it the success. Joint ventures are a cooperative strategy that can be followed by firms in enhancing their growth and retrenchment, thereby gaining a competitive advantage and consequently ensuring the sustainability of an organization.
Strategic management plays a great role in overcoming joint venture limitations. The paper defines strategic management as science and art, where cross-functional decisions can be formulated, implemented, and evaluated. Strategic management is also said to have originated in the 1950s and 1960s, according to the article. The article highlights the importance of strategic management as creating and taking advantage of tomorrow’s opportunity.
Importance of Joint Ventures
According to the article, forming a joint venture is vital in gaining market, use of technological skills, and exploiting of best managerial and entrepreneurial capabilities. The article highlights that the major pitfall for a joint venture is in case there is no trust between partners. The article notes that a joint venture is a strategy that can be used by organizations for their success in the economy with increasing competition. Therefore the authors note that large companies are using joint ventures in filling their capacity gaps.
The article relates to joint ventures because the main objective of the authors was to research the future of joint ventures. The articles have evaluated many previous studies on joint ventures and conclude by noting that all previous research never focused on strategic management to help joint ventures in adapting to rapid changes. Therefore for joint ventures to be successful, Strategic management must be implemented.
Annotated Bibliography
Dubey, R. (2016). An integrated framework of joint venture success. International Journal Of Strategic Business Alliances.
The article notes that most joint venture entities do not perform to their expectations. Little research has been conducted to look into the factors that influence the failure and successes of the joint ventures. The article’s primary objective to develop an all-inclusive framework in the alliance and firm level of the factors of formation, management, and initialization stages of a joint venture and how the elements influence joint venture success. The findings of the article are based on primary interviews that were conducted with the executives in top management who included CEOs of the Indian sector of retail.
Nippa, M., & Reuer, J. (2019). On the future of international joint venture research. Journal Of International Business Studies.
The article highlights the impact of international joint ventures as a form of strategic alliances. The primary objective of the paper is to develop a research agenda that is expansive and based on a deep understanding of past studies and all-inclusive frameworks in the article. The article identifies several research opportunities that help in advancing international joint ventures.
References
Dubey, R. (2016). An integrated framework of joint venture success. International Journal Of Strategic Business Alliances, 5(1), 1. doi: 10.1504/ijsba.2016.078248
Nippa, M., & Reuer, J. (2019). On the future of international joint venture research. Journal Of International Business Studies, 50(4), 555-597. doi: 10.1057/s41267-019-00212-0
Sayyed Husein, R., & Sayyed Husein, S. (2013). The future of joint ventures: A literature review. International Journal Of Business Management Studies.