Barriers to International Construction Joint Ventures (ICJVs) in Myanmar

Abstract

Companies all around the world have been attempting to grow through collaborative partnerships in recent years. International Construction Joint Ventures (ICJVs) have grown in popularity as the global construction industry integrates into a more dynamic economic environment. Due to the inherent complexities of ICJVs, featuring a plethora of management systems, different goals and organizational climates, cultural fit and communication act as the barriers for ICJVs. Furthermore, A comparative study would help to indicate what are the most common barriers for ICJVs in Myanmar. This research aims to identify the barriers to ICJVs in Myanmar and propose effective drivers to solve the barriers. Six in-depth case studies of ICJV projects were carried out through interviews with corporate executives, general managers, senior managers, project managers, and business managers who have acquired international experience and are directly involved in handling overseas construction projects to compare their perceptions. All interviewees had experience in International Joint Venture companies for at least 5 years. Data were collected from International Joint Venture projects currently having and used to have in Yangon, Myanmar for this research. The results suggest that the most common barriers to ICJVs in Myanmar construction industries include the political situation of Myanmar, Differences in organization policies among ICJVs contracting parties, lack of key employees, international business network, language and culture. The study found four more barriers associated with ICJV which were electricity price, land price, difficulty of proper banking transaction and unstable fluctuation of currency exchange. As a result, this research provides the establishment of specific knowledge of barriers for ICJVs in Myanmar.