Joint Venture Formation Research Articles

Aplikasi Strategi Lautan Biru Kebangsaan Dalam Agihan Zakat Pendidikan Di Zakat Pulau Pinang (ZPP) (The National Blue Ocean Strategy Applications Zakat Education in Zakat Penang (ZPP))

Among the key thrusts and government policies to enhance the country's productivity competitiveness towards high-income and developed nations is through the national blue ocean strategy or Blue Ocean Strategy. This study is to analyze the application of the national blue ocean strategy in Zakat of Penang (ZPP) in the context of the distribution of zakat education today. The ZPP was chosen as the highest among the highest education zakat in the country in 2017 amounting to RM 31,713,200.41 being 31.78% of the total distribution of RM 99,782,721.01. The question is, how far is the application of the national blue ocean strategy to assist the distribution of zakat education in ZPP and how does the application take place according to current and local conditions? Hence, the objective of this study is to identify the forms of joint ventures carried out with external agencies to strengthen the distribution system in ZPP and to meet the reality of current zakat distribution of education. The methodology of the study was conducted qualitatively by collecting data through library research and field research using unstructured interview methods. Data analysis uses descriptive and comparative methods. Research findings show that there are various joint venture programs in the distribution of zakat education that involve national blue ocean strategies such as the joint program of Penang Development Center, Naza Group, PERDA, State Education Department, KADUN which has a positive impact on the distribution especially education zakat in Penang.

Fairness considerations in joint venture formation

Using a series of laboratory experiments in the context of bilateral bargaining over whether and how to engage in a joint venture, this paper shows that fairness concerns result in failures to undertake profitable joint production opportunities. We find that framing an opportunity as an employment relationship rather than as a partnership significantly reduces these inefficiencies and increases subjects’ welfare. Consistent with the theoretical model developed in the paper, text analysis and a follow-up experiment demonstrate that the lower likelihood of an efficient outcome in the partnership frame is driven primarily by a concern for fairness generated by the perceived social relationship associated with partnerships, and not by differences in the economic structure, cognition, subject motivation, or changes in relative bargaining power.

Strategic merge: a gain or a gamble – the case of Telco China

Learning outcomes By reviewing the case study, readers are expected to understand the constraints of competitive strategies in a shifting environmental landscape; the difficulties of foreign companies to sustain in an emerging market with government interventions; the subtlety of joint venture (JV) formation by partners with very divergent background, priority and agenda; evaluation of behavioural orientations of partnership and JV operational arrangements as determinants of a successful JV strategy. Case overview/synopsis High-tech companies can enjoy super profits from their products when only a few competitors can compete with them technologically. However, these companies also nurture a high-cost operational culture that sets a constraint for their further growth when superiority of the technology can no longer be maintained. High-tech companies may reposition their businesses with a strategic shift from differentiation strategy to cost focus strategy. The attendant shift as well as synchronization problem in an organization may require a larger effort to revamp. This case describes a global telecom infrastructure company with successful business performance in China in her early establishment with a pre-emptive technological edge. Mitigation of technological superiority and the rise of local competitors have forced the Company to opt for a cooperative strategy with a local player in the establishment of a low-cost joint venture. Does the new joint venture facilitate the strategic shift or just create an illusion of cooperation? Complexity academic level Undergraduate students and post graduate students taking strategic management course. Supplementary materials Teaching Notes are available for educators only. Please contact your library to gain login details or email support@emeraldinsight.com to request teaching notes. Subject code CSS 11: Strategy.

Minimum cost network design in strategic alliances

Strategic alliances are established between firms to improve their competitiveness in markets and generally appear in the form of joint ventures. Such collaborative efforts require centralized planning, and the survival of the alliance largely depends on the success of joint planning processes. In this regard, we investigate the opportunities that centralized collaboration can offer to firms when designing their service networks. Apart from the classical fixed and variable costs associated with the network design, we also consider transaction costs induced by the formation of the alliance, which can broadly be defined as cost components related to the coordination and monitoring of the people, efforts and resources. We concentrate on bilateral alliances and develop alternative models for solving their associated network design problem. We also adopt a state-of-the-art heuristic to solve large-scale instances. Our findings confirm that accounting for the transaction cost in network design is vital for the alliance. These transaction costs can be high enough to even render the collaboration unattractive. Hence, careful data collection and model treatment are required before deciding whether to form an alliance.

Search Complementarities, Aggregate Fluctuations, and Fiscal Policy

We develop a quantitative business cycle model with search complementarities in the inter-firm matching process that entails a multiplicity of equilibria. An active static equilibrium with strong joint venture formation, large output, and low unemployment can coexist with a passive static equilibrium with low joint venture formation, low output, and high unemployment. Changes in fundamentals move the system between the two static equilibria, generating large and persistent business cycle fluctuations. The volatility of shocks is important for the selection and duration of each static equilibrium. Sufficiently adverse shocks in periods of low macroeconomic volatility trigger severe and protracted downturns. The magnitude of government intervention is critical to foster economic recovery in the passive static equilibrium, while it plays a limited role in the active static equilibrium.

Search Complementarities, Aggregate Fluctuations, and Fiscal Policy

We develop a quantitative business cycle model with search complementarities in the inter- �rm matching process that entails a multiplicity of equilibria. An active static equilibrium with strong joint venture formation, large output, and low unemployment can coexist with a passive static equilibrium with low joint venture formation, low output, and high unemployment. Changes in fundamentals move the system between the two static equilibria, generating large and persistent business cycle uctuations. The volatility of shocks is important for the selection and duration of each static equilibrium. Su�ciently adverse shocks in periods of low macroeconomic volatility trigger severe and protracted downturns. The magnitude of government intervention is critical to foster economic recovery in the passive static equilibrium, while it plays a limited role in the active static equilibrium.

Joint venture versus non-joint venture projects in the UAE construction industry: a comparison of the usage of project management practices and performance

The purpose of this paper is to report on a study comparing joint venture and non-joint venture projects in terms of their performance and usage of project management practices. Data were obtained from project managers at 99 contracting organisations in the United Arab Emirates (UAE) construction industry. The results show an agreement between the two types of project in the usage level of 35 out of 40 different practices associated with the ten knowledge areas articulated in the Project Management Institute (PMI) Project Management Body of Knowledge (PMBOK) Guide (PMI, 2017). However, joint venture construction projects had higher usages of four cost-and procurement-related practices compared to non-joint venture construction projects. The results also show that although they are associated with increased risks due to the involvement of partners, generally the overall performance of joint venture construction projects is comparable with that of non-joint venture construction projects. The findings of this study could be of value to organisations that are planning to form joint venture projects in the UAE and other countries with similar environments.

중국 소비자의 자동차 브랜드 인식 연구 - 중국 시안을 중심으로

So called BRICs(Brazil, Russia, India and China) nations and other newly industrialized countries are emerging as key international investment host countries. With low labor costs and market potential, these countries are drawing attention. This situation is the same in global automobile market. China in particular is widely perceived to be the most decisive market among global automobile companies. In most countries, automobile market is now saturated and manufacturers can only expect growth in newly industrialized countries such as China. Automobile brands in Chinese market can be categorized into three groups. First, there are indigenous Chinese local brands. Second, there are global brands that have entered Chinese market by forming joint ventures with local brands. Third, there are independent brands which are exclusive brands of foreign global makers which are introduced only for Chinese market. This study identifies differences of Chinese consumers’ cognition in local brands and global brands that are in various degree of brand positioning and in independent brands.

‘Made in China 2025’: the development of a new energy vehicle industry in China

ABSTRACTThis paper examines how the state can facilitate the establishment of a domestic production network in new energy vehicles (NEVs), from the making of electric vehicle batteries and battery management systems to the manufacturing of NEVs. The case of China illustrates how a non-firm actor was able to create the largest NEV market in the world by implementing proactive policies for market creation and new industrial regulations for cost and range parity. To facilitate the further development of domestic production networks for NEVs, the Chinese government shifted its regulatory parameters and leveraged the market size to drive the incumbent global automakers to rejig their product portfolios and form joint ventures with domestic NEV-makers in China. This provides a prima facie case illustrating how a proactive state can take a dominant role in establishing a domestic production network without coupling with global lead firms in global production networks.

Element 1 forms joint venture with Dingzan to target China markets

US-based Element 1 Corporation (e1) and Shanghai Dingzan Equity Fund Management Co Ltd have formed a Joint Venture Company (JVCo) to facilitate the deployment of distributed hydrogen generation technologies throughout China. The joint venture, Zhejiang Element One New Energy Technology Co Ltd, will be based in Jiaxing in Zhejiang Province, 100 km (60 miles) southwest of Shanghai.

Shareholder Influence on Joint Venture Exploration

In this study, we theorize about how different types of institutional investors influence firms’ choice of exploration versus exploitation for their joint ventures (JVs). Exploratory JVs engender risk, uncertain outcomes, and ex post contractual updating, whereas exploitative JVs allow for ex ante contracts. We argue that dedicated institutional investors (DIIs), who maintain concentrated holdings over time regardless of current earnings, offer tolerance for failure and reward for long-term success that encourages managerial choice of exploratory JVs. Transient institutional investors (TIIs), who trade frequently based on near-term performance metrics, prefer ex ante contracts and use exit to discipline managers who do not meet their short-term performance objectives. This suggests that TIIs may influence managers to reduce the extent to which they choose exploratory (as opposed to exploitative) JVs. Furthermore, we argue that the transactional governance of TIIs gives way to the relational monitoring of DIIs when both types of shareholders are present. As a result, the likelihood of choosing exploration, versus exploitation, as a JV formation strategy is greatest in the presence of high DII and TII ownership. We examine JVs among S&P 500 firms over the years 2000 to 2010, and results largely support our theory.

GUN JUMPING IN BRAZILIAN ANTITRUST LAW: A CASE STUDY IN THE OIL INDUSTRY

This article presents some of the main changes introduced in the Brazilian antitrust system with the publication of Law no. 12.529, 2011, which introduced important changes in the control of acts of economic concentration - mergers, acquisitions, formation of joint ventures – which now began to be performed by the competent authority prior to the act of concentration, avoiding the consummation of transactions without the consent of CADE and analyzes the concept of Gun Jumping. The legislative change imposes a challenge for the Brazilian antitrust system: to define the boundaries between a lawful process of economic concentration and a Gun Jumping practice. In particular, a study was conducted on these impacts on the national oil industry in order to evaluate the performance of CADE in the implementation of the legislation.

GUN JUMPING IN BRAZILIAN ANTITRUST LAW: A CASE STUDY IN THE OIL INDUSTRY

This article presents some of the main changes introduced in the Brazilian antitrust system with the publication of Law no. 12.529, 2011, which introduced important changes in the control of acts of economic concentration - mergers, acquisitions, formation of joint ventures – which now began to be performed by the competent authority prior to the act of concentration, avoiding the consummation of transactions without the consent of CADE and analyzes the concept of Gun Jumping. The legislative change imposes a challenge for the Brazilian antitrust system: to define the boundaries between a lawful process of economic concentration and a Gun Jumping practice. In particular, a study was conducted on these impacts on the national oil industry in order to evaluate the performance of CADE in the implementation of the legislation.

GUN JUMPING IN BRAZILIAN ANTITRUST LAW: A CASE STUDY IN THE OIL INDUSTRY

This article presents some of the main changes introduced in the Brazilian antitrust system with the publication of Law no. 12.529, 2011, which introduced important changes in the control of acts of economic concentration - mergers, acquisitions, formation of joint ventures – which now began to be performed by the competent authority prior to the act of concentration, avoiding the consummation of transactions without the consent of CADE and analyzes the concept of Gun Jumping. The legislative change imposes a challenge for the Brazilian antitrust system: to define the boundaries between a lawful process of economic concentration and a Gun Jumping practice. In particular, a study was conducted on these impacts on the national oil industry in order to evaluate the performance of CADE in the implementation of the legislation.

The role of psychic distance in entry mode decisions: Magnifying the threat of opportunism or increasing the need for local knowledge?

Research Summary: With respect to entry mode decisions, psychic distance may play two contradictory roles. On one hand, the transaction cost perspective is concerned with opportunism. Psychic distance magnifies the threat of opportunism, which encourages higher levels of control by foreign firms. Conversely, the new internalization perspective emphasizes the role of complementary assets controlled by local entities. Distance increases the need to access local knowledge, which encourages firms to seek joint ventures. By adopting an experimental approach and measuring managers' a priori perceptions of distance, this article contributes to the literature by providing a more sophisticated approach for discriminating between these effects. The results indicate that distance magnifies the need for firms to access complementary assets; however, distance does not appear to magnify the threat of opportunism. Managerial Summary: This article explores the role that psychic distance (i.e., differences across countries in culture, language, religion, etc.) plays in how firms enter foreign markets. Specifically, do they prefer wholly owned subsidiaries (WOS) or do they prefer to form joint ventures (JV) with local players? One perspective argues that firms are concerned about potential partners in a foreign market taking advantage of them; thus, they will prefer the greater control a WOS offers. Conversely, firms may simply recognize that these differences put them at a disadvantage and prefer a JV as a way to gain local knowledge. Our experiments indicate that the latter explanation dominates. When entering very different countries, managers seem to prefer JVs in order to access key local knowledge.

Joint ventures and technology adoption: A Chinese industrial policy that backfired

To spur technology transfer, emerging market policymakers often require foreign firms to form joint ventures (JVs) with domestic firms. Through knowledge spillovers, JVs may reduce technology acquisition costs for domestic firms. Yet domestic firm rents from JVs could discourage innovation through a cannibalization effect. Which force dominates is an empirical question. I address it with novel data on China's auto sector. In response to fuel economy standards requiring firms to upgrade technology or sacrifice quality, firms with JVs reduced quality and price relative to their counterparts. Consistent with cannibalization, firms with JVs drive the negative effect.

Homa Pumpenfabrik forms joint venture with India's EKKI Pumps

Germany's Homa Pumpenfabrik GmbH and India's EKKI Pumps have signed an agreement to set up a wastewater focused joint venture pump company in India to serve the domestic and neighbouring markets.

Factors Influencing the Choice of Investment in Life Insurance Policy

Insurance industry in India is flourishing with numbers of national and global players in the form of joint ventures and is excelling with the exponential growth in business. In spite of infusing several rules and regulations of the Government of India, insurance industry has been experiencing tremendous progress in terms of increasing number of investors with considerable number of new entry of insurance companies into the sector. At present there are 24 numbers of domestic and foreign players operating in the sector. In India insurance still has been considered as a tax saving tool rather than an investment option. The present study analyzes the Factors Influencing the Choice of Investors in Life Insurance Policy in Hyderabad city. The specific objective was to find out whether there is any association between annual income of investor and factors influencing consumer choice of investment in life insurance. A sample of 75 insurance investors’ data was statistically analyzed with the help of Chi-square test and the study was concluded that there is no association between annual income and factors influencing investor choice of investment in life insurance. It is suggested that the majority of the investors’ should treat insurance policy is not only a tax saving option but also the risk protection and a multi-faceted investment option. The author also acknowledges the limitation of the small sample which may not be exhaustive for any policy decision of the insurance companies. Hence, the findings of the study are to be correlated with the current trends in the industry with a comprehensive study.

COMPETITIVE EFFECTS OF INTERNATIONAL AIRLINE COOPERATION

This article analyzes the impact of varying degrees of airline cooperation on nonstop and connecting international traffic using detailed datasets of travel between the United States and other countries from 1998 to 2015. For connecting passengers, we find that antitrust immune alliances (ATIs) generate fare reductions (relative to interline or simple codeshare itineraries), although these reductions are not significantly larger than those generated by alliances without antitrust immunity. In contrast, “metal neutral” joint ventures (JVs) lead to substantially larger fare reductions, similar to those associated with online service in which a single carrier serves the entire connecting itinerary. For nonstop passengers we find that the formation of an ATI or JV between two or more airlines serving a route does not generate higher fares. Finally, we find that ATIs and JVs are associated with increased segment traffic and net entry on routes. Our results collectively demonstrate that, on the whole, ATI grants—particularly when coupled with the formation of JVs—have been strongly procompetitive, generating lower fares on connecting routes and increased traffic on segments served by multiple alliance partners, with no associated increase in nonstop fares where partner airlines overlap operations.

Corruption and Home Bias in Global Real Estate Investments

This study affirms the negative relationship between corruption and real estate investment flows using a comprehensive set of cross-border commercial real estate investment data from 2001 to 2014. We find non-information explanations for foreign investments in corrupt countries. Foreign investments in corrupt markets are highly diversified by investor type and property type, and are independent of geographical proximity. Large foreign countries account for only a small fraction of foreign real estate investment in corrupt countries. Foreign investors form joint ventures to mitigate corruption risks. They hold real estate for a shorter period and earn lower returns in corrupt countries.