UK joint venture activity in the Czech Republic: motives and uses

Abstract

Presents the initial findings of an ongoing study into the motives and uses of the joint venture by British investors in the Czech Republic. Observes that, despite the many opportunities presented of doing business in Eastern Europe, the British have been slow to invest; the UK does not feature in the top seven investors in the Czech Republic. Points out that it is a widely held belief that the joint venture is the most common mode of entry used by Western firms when investing in Central and Eastern Europe. Contends that there is a clear match between the needs of market‐seeking or cost advantage‐seeking Western firms on the one hand and the technological needs of the Eastern Europeans on the other. However, suggests from the study data that UK investors have chosen to own their foreign operations wholly rather than work with local partners. Examines the different modes of entry, the sector and the function of investment used by British firms. Notes the predominance of service activities.