Abstract
In the present era of globalization, every business entity in developed and developing economies are relying on technology to advance its production or service processes. The technological race is revolutionizing the aspects of product or service production system even most business organizations may not typically consider high-tech operations. Although technology-oriented organizations may produce very different products or services to sustain their differentiation and leadership in the market. These organizations when developing their business model and strategies may have more emphasis to build their high-tech capacity to sustain their position in the competitive market, particularly in the Saudi-based petrochemical industry. For this purpose, Saudi-based organizations attempt to obtain high-tech distinctive competencies across their national border by using the option of international joint ventures. These choices may allow them and partner firms to take advantage of national differences in terms of cost and quality factors of production such as labor, energy, land, and capital, which permits these organizations to lower their cost structures and boost oval profitability.
Highlights
In the present era of globalization, every business entity in developed and developing economies are relying on technology to advance its production or service processes
Most multinational organizations want to expand of a joint venture may have a different strategic interest and their operations in emerging economies because of an subsequently affect the ability of collaboration), governance abundance of natural resources like Saudi Arabia in the, organizational international expansion as it is today
In Saudi Arabia, these multinational firms cultural differences that exist between two partners come together with local companies to form new business (Oakey, 2013)
Summary
In the present era of globalization, every business entity in developed and developing economies are relying on technology to advance its production or service processes. The difference among governance or control associated with this diversification without having to systems may lead to disintegration or failure of IJV merge their activities into one company or bear the costs (Jauhiainen & Moilanen,2012) These perspectives are and risks of developing new products on their own consistent with the vantage point of the study. This issue can be minimized if the management of IJV confidence and trust of IJV partners may remove the partners may act rationally when forming the structure barriers for the transformation of high-tech distinctive and culture of new business entities to avoid that kind of competency and to exploit the rare resources in the Saudiproblem in the present and future (Wang, 2014). Based petrochemical industry (Sinclair & Hamill, 2010)
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