Joint Venture Research Articles

Project Management Practices to Address the Challenges in International Construction Joint Ventures in the Sri Lankan Construction Industry

ABSTRACT International Construction Joint Ventures (ICJVs) offer benefits to both local and foreign partners. However, their failure rates tend to be high, leading to poor ICJV performance. Effective Project Management (PM) is considered a means to resolve challenges in a construction project. Therefore, this research aims to address the challenges in ICJV projects within the Sri Lankan construction industry through PM practices to establish successful ICJVs. The research adopted a mixed-method approach. A preliminary survey was conducted to validate the challenges in the Sri Lankan context. After that, challenges were ranked based on their significance level using the Relative Importance Index (RII) method through a questionnaire survey. Then, Semi-structured interviews were conducted to identify the PM practices that can address significant challenges through code-based content analysis. The study revealed 38 challenges applicable to ICJVs and identified 88 PM practices for resolving 10 significant challenges out of the 38 identified in ICJV projects in Sri Lanka (SL). Finally, a framework was developed for successful ICJVs by addressing challenges through PM practices. This study marks the first attempt to establish a framework for successful ICJVs by addressing challenges through PM practices in the Sri Lankan construction industry.

Outsourcing in the Public Sector and Its Negative Effects on Service Delivery in Zambia

Abstract The 21st century has seen the public sector in Africa adopting the strategy of outsourcing so that public resources can be distributed using market mechanisms. However, the involvement of the private sector in the delivery of public goods and services has been associated with poor performance. Therefore, the purpose of this paper is to examine the nature of outsourcing in the public sector, and its negative effects on service delivery in Zambia. In Zambia, outsourcing of public goods and services has mainly assumed four forms: 1) joint venture, 2) supply, 3) build-operate-transfer, and 4) management contracts. The paper argues that, the outsourcing of public goods and services in Zambia has resulted in overpriced goods and services, non-delivery of paid for goods and services, delays in the delivery of goods and services, delivery of substandard goods and services, and manipulation of procedures. The paper asserts that, these negative effects are as a result of the desire by non-state actors (mainly private companies), engaged by the Zambian government to deliver public goods and services, to maximise their profits. Consequently, outsourcing of public goods and services in Zambia does not benefit the public and government.

International Market Development Strategies for Enhancing Global Expansion in the Export Industry

This research paper explores a range of international market development strategies that companies can adopt to enhance global expansion in the export industry. The study emphasizes the significance of conducting comprehensive market research, which enables businesses to identify target markets with high demand and subsequently improve market penetration and increase export sales. Furthermore, the findings highlight the importance of market segmentation in tailoring offerings to meet specific market needs, resulting in higher customer satisfaction and a larger market share. The research also reveals that conducting competitive analysis is crucial for companies to differentiate their offerings, develop competitive advantages, and improve their market positioning, ultimately leading to increased market share. The study underscores the importance of selecting the appropriate entry mode, such as direct exporting, licensing, or joint ventures, as it significantly impacts the success of global expansion efforts. Additionally, the research emphasizes the significance of developing efficient distribution channels to ensure timely and cost-effective delivery of products, thereby enhancing customer satisfaction and facilitating market penetration. The findings also stress the importance of adapting branding and marketing strategies to align with local cultural preferences and linguistic nuances, which helps establish a strong brand presence, foster customer loyalty, and gain market acceptance. Moreover, the research highlights the role of government support, trade agreements, and financial incentives in facilitating global expansion. Leveraging these resources provides companies with valuable market insights, resources, and financial assistance, thereby bolstering their international expansion endeavors.

Towards a more stable Construction Joint Venture agreement: individual rationality vs. fairness

Contractors’ decisions are individually rational and not always based on fairness that is needed in collaborative projects, such as Construction Joint Ventures (CJVs). This paper provides a comparative analysis between rational and fair-based sharing in CJVs risk management, along with the commonly used investment-based approach. The analysis is divided into two processes; (1) the contingency cost (CC) calculation process to generate the CCs based on the probabilities and impacts of the project’s different risk factors; and (2) the sharing process to allocate the payoff shares to the participating players using three different cooperative game theory (CGT) solution concepts, namely Kernel, Shapley value and τ-value. The analysis is carried out using two illustrative case studies drawn from the literature. The authors mathematically analyzed the stability of the coalition, and evaluated the results through a questionnaire survey held by construction practitioners to offer their perception on the proposed shares. The results show that fair-based approaches resulted in the most stable coalition formation compared to rational-based and investment-based shares. This shows the need to adopt fairness into the decision-making process of contractors in CJVs. Ultimately, this research shall help the decision-makers to craft agreements that stabilize collaborative construction projects.

Efficiency of Islamic Life Insurance in Indonesia: A Two-stages DEA

The Islamic insurance industry in Indonesia is one of the industries that is experiencing very rapid development every year. This can be seen from the growth of assets and market share that continues to increase, especially in the Islamic life insurance industry. The rapid development of the Islamic life insurance industry has led to a stronger level of competition between companies. To be able to compete in the insurance industry nationally, Islamic life insurance must be able to compete with conventional insurance by improving performance optimally. The purpose of this study is to analyze the efficiency of Islamic life insurance companies and business units in Indonesia for the period 2014-2019 and the factors that influence them. This study used 3 companies and 10 Islamic life insurance business units that issued their financial statements in the 2014-2019 period. The method used in this research is the Data Envelopment Analysis (DEA) method and Tobit. The estimation results show that all companies and business units of Islamic life insurance in Indonesia have not reached the level of performance efficiency and there are still inefficiencies in the use of inputs and outputs. Factors that positively affect efficiency are joint venture dummy, while liquidity ratio and expense to net premium ratio negatively affect the performance efficiency of Islamic life insurance companies and business units in Indonesia.

The Situation of Sino-foreign Joint Venture Schools under Globalization

This paper examines the intricate dynamics between globalization and education, with a specific focus on the rise and development of Sino-foreign joint venture schools in Sichuan, China. It intricately analyzes how these institutions, notably the Sichuan University-Pittsburgh Institute and the Sino-French Aviation University, are reshaping educational practices by integrating Eastern and Western pedagogical approaches. These collaborations aim to produce globally competent graduates, highlighting the role of such institutions in elevating China's educational standards. The study delves into various aspects of these joint ventures, including their organizational structures, funding mechanisms, curriculum designs, and faculty and student demographics. A comparative analysis of two representative joint programs is provided, underscoring differences in teaching methods, curriculum focus, and targeted student backgrounds. The paper concludes by discussing the developmental potential and challenges faced by these institutions amidst the rapidly evolving landscape of international education. It emphasizes the significance of these joint ventures in fostering educational innovation and cross-cultural understanding. The research presented in this paper not only contributes to a deeper understanding of the impact of globalization on higher education but also provides valuable insights into the future of international educational collaborations. The findings suggest the need for thoughtful policy interventions to support the growth and sustainability of such transformative educational models.

Prospects for the Regulation of Harmful Substances Produced by the Oil Production Enterprise

This study investigates the identification, quantification, and regulatory aspects of pollutant sources in an oil production joint venture. The research aims to determine the number of sources and quantify the substances released, while analyzing regulatory frameworks addressing harmful emissions. Employing a multifaceted approach, we utilize advanced methods for source identification and quantify emitted substances. Results reveal key sources and their associated emission levels, shedding light on the environmental impact of the joint venture. The implications of our findings extend to refining regulatory strategies for mitigating adverse effects on the environment, making this study crucial for global scientists and policymakers alike. Highlights: Comprehensive Assessment: This study provides a thorough examination of pollutant sources in an oil production joint venture, offering a detailed understanding of the various contributors to environmental contamination. Quantification and Identification: Advanced methods are employed to quantify the number of pollutant sources and identify the substances released, providing precise data crucial for regulatory considerations and environmental management. Regulatory Implications: The research analyzes existing regulatory frameworks addressing harmful emissions, suggesting potential improvements to enhance environmental protection and promote sustainable practices in oil production joint ventures. Keywords: Pollutant Sources, Oil Production, Joint Venture, Permitted Rate, Environmental Condition.

The World Health Organization Reporting System for Pancreaticobiliary Cytopathology.

The World Health Organization (WHO) Reporting System for Pancreaticobiliary Cytopathology (WHO System) is the product of a joint venture between the World Health Organization, the International Academy of Cytology, and the International Agency for Research on Cancer. The WHO System revises the Papanicolaou Society of Cytopathology System for Reporting Pancreaticobiliary Cytology (PSC System) and replaces the 6-tiered system with a 7-tiered system. To explain the WHO System and the differences with the PSC System. The WHO System and the PSC System of Reporting Pancreaticobiliary Cytopathology. The diagnostic categories of the WHO System are "Insufficient/Inadequate/Nondiagnostic"; "Benign (Negative for Malignancy"'; "Atypical"; "Pancreaticobiliary Neoplasm, Low Risk/Low Grade (PaN-Low)"; "Pancreatic Neoplasm, High Risk/High Grade (PaN-High)"; "Suspicious for Malignancy"; and "Malignant." In the WHO System, the "benign" category includes both nonneoplastic and neoplastic lesions, so the "Neoplastic: Benign" category of the PSC system has been eliminated. Low-grade malignancies, pancreatic neuroendocrine tumors (PanNETs), and solid-pseudopapillary neoplasm (SPN) classified as "Neoplastic: Other" in the PSC System are classified as "Malignant" in the WHO System, leaving in the "Neoplasm" category intraductal lesions, which are divided into 2 new diagnostic categories: "Pancreaticobiliary Neoplasm (PaN)-Low Risk/Grade" and "PaN-High Risk/Grade." As with the PSC System, the WHO System advocates close correlation with imaging and encourages incorporation of ancillary testing into the final diagnosis, such as biochemical (carcinoembryonic antigen [CEA] and amylase) and molecular testing. The WHO System includes risk of malignancy per category, and reporting and diagnostic management options that recognize the variations in resources of low- and middle-income countries.

Risk assessment of construction joint ventures in Sri Lanka

The construction industry always performs in a vigorous nature that would enable a risk-prone environment. Risks involved in construction projects are mitigated through various methods worldwide. One of the risk-sharing strategies is adopting Construction Joint Ventures (CJV). Even though CJV plays a crucial role in risk-mitigating in the construction industry, CJV has its own risks. But there was a dearth of studies which focused on risk assessment in Sri Lankan CJVs. Therefore, the research aims to develop a risk assessment model for CJVs in Sri Lanka. Initially, using an in-depth review of the literature, the main risk categories and sub-risk factors of CJVs were identified. The research adopted a quantitative approach through a questionnaire survey to collect data from industry experts. Analytical Hierarchy Process (AHP) was used as the data analyzing technique. The findings revealed that the project-specific risk category highly affects the CJV compared to external and internal risk categories and thus recommending industry practitioners to highly consider the project specific risk factors. Furthermore, this study developed a computer-based risk assessment model as a practical implication to evaluate the risks involved in Sri Lankan CJVs.

The Stackelberg duel between Central Bank Digital Currencies and private payment titans in China

This study presents an in-depth analysis of the rapidly evolving mobile payment market, focusing on the competition between Central Bank Digital Currencies (CBDCs), as exemplified by China's Digital Currency Electronic Payment (DCEP), and well-established private digital payment platforms. This research builds on economic theories, including Metcalfe's Law and the Capital Asset Pricing Model (CAPM). It employs the Stackelberg game model as a strategic framework to dissect these payment systems' interactions and potential equilibrium outcomes. A notable innovation of this study is the application of advanced simulation techniques, as it uses Matlab2018a to model and predict variations in profit margins contingent on the size of the user base for each payment method. This approach yields three insightful and nonintuitive results that deepen our understanding of market dynamics. First, the study underscores the indispensable role of government support, particularly in the nascent stages of DCEP implementation, as a catalyst for competitiveness against entrenched third-party systems. Without proactive and substantial backing from the government, the DCEP might struggle to gain a foothold in a market dominated by private entities. Second, this study highlights the critical interconnectedness among the various user groups. It posits that for DCEP to effectively penetrate the market and challenge the dominance of third-party platforms, it must strategically align itself within the existing networks of these platforms. This aspect emphasises the importance of understanding and leveraging the complex web of relationships and dependencies within the mobile payment ecosystem. Third, the study identifies mutually beneficial cooperative strategies between the DCEP and third-party platforms. Drawing on the concept of Nash equilibrium, this suggests that collaboration, rather than competition, could lead to optimal outcomes for both parties. This cooperative stance can manifest in various forms, such as shared technological infrastructure, joint ventures, and cross-platform compatibility, ultimately enhancing the value proposition for end users. These findings have significant implications for policymakers, financial regulators, and market strategists, as they suggest that a balanced approach that harmonises the strengths of state-led digital currencies and private payment solutions is crucial for the sustainable development of the digital finance sector. This study also provides strategic insights for CBDCs and private payment platforms, guiding them to make informed decisions in a market increasingly characterised by technological innovation, regulatory shifts, and evolving consumer preferences.

How Do Foreign Labor Regulations Affect Firms’ Operating Strategies?

Abstract We examine how changes in foreign labor regulations affect U.S. multinationals’ operating strategies. We show that firms with integrated operations in countries where labor regulations become tighter tend to establish arm’s-length relations with local business partners in that nation. The substitution between integrated and arm’s-length operations is stronger toward joint ventures than suppliers and weaker in the presence of financial constraints. Our findings are consistent with the idea that when firms find it harder to terminate their workers in integrated operations, they change to an operating model where it is easier to replace or discontinue business partners instead of employees.

Technocrats of Continuity: Soviet International Bankers and the Persistence of the State, 1988–2011

Since the dissolution of the USSR, the Russian state has accommodated private property without abandoning its dominant position. This essay argues that, over two decades stretching from perestroika until the 2000s, the centrality of the state has been embodied by technocratic continuity amongst upper and mid-level managers of Soviet and then Russian international finance. This case is made here by focusing on a group of Soviet bankers working out of Zürich. Two milestone events frame the argument articulated throughout the essay: the issue of the first Soviet international bond and the establishment of a Soviet–Western financial joint venture in the West in 1988, and the opening of a full-fledged Russian bank in the United States in 2011.

Comparative Analysis of Credit Risk Management Practices: A Study of Domestic and Joint Venture Commercial Banks in Nepal

The capital adequacy ratio, credit to deposit ratio, bank size, leverage ratio, loan loss provision, and non-performing loans were assessed for determining the relationships within domestic and joint venture commercial banks in Nepal. Using secondary data from 10 commercial banks spanning 2006/09 to 2019/20, totaling 140 observations, the study employs descriptive and regression analyses. Data sources include NRB's Banking and Financial Statistics, annual supervision reports, and selected banks' annual reports. HBL has the highest average non-performing loan (2.56%), while NIC Asia has the lowest (0.23%). SCBL exhibits the highest average capital adequacy ratio (15.92%), and SBL leads in credit to deposit ratio (86.85%). EBL tops in bank size (Rs 85,327 million), and MBL in leverage ratio (19.39%). HBL records the highest loan loss provision ratio (1.49%), with NBL at the lowest (0.32%). Descriptive statistics reveal the mean non-performing loan for domestic banks (1.12%), joint venture banks (1.22%), and overall banks (1.17%). The correlation analysis indicates negative correlations between capital adequacy ratio, bank size, credit to deposit ratio, leverage ratio, and loan loss provision with non-performing loans. Regression results underscore the significance of leverage ratio and loan loss provision in impacting non-performing loans for overall banks, while domestic banks find significance only in loan loss provision. Joint venture banks show significance in leverage ratio and loan loss provision. Keywords: Credit risk, Commercial banks, Nepalese banking sector, Leverage ratio, Loan loss provision, Capital adequacy ratio, Descriptive analysis, Regression analysis.

360 Degree Review of the Legality of the Government of Malawi's Joint Venture in Salima Sugar Public Limited Company - Litmus Test for Public Finance Management Act 2022

360 Degree Review of the Legality of the Government of Malawi's Joint Venture in Salima Sugar Public Limited Company - Litmus Test for Public Finance Management Act 2022

How do creative assets affect overseas market entry modes of enterprises- the moderating role of internal and external factors.

In the process of transnational investment management, the choice of entry mode is one of the key decisions, and creative assets will affect the choice of overseas market entry mode. However, few studies have analyzed how creative assets affect firms' overseas market entry patterns. This paper takes 480 overseas investment data of 134 Chinese listed enterprises from 2012 to 2019 as research samples and uses the Logistic model to study the influence of creative assets owned by enterprises on their choice of the joint venture and wholly owned modes. At the same time, we examine the formal and informal institutional distance between home and host countries, and the moderating effect of firms' own experience in the process of model selection. In addition, using the fuzzy-set qualitative comparative analysis (fsQCA) from the perspective of configuration to explore the different paths of overseas market entry mode. The research results indicate that marketing intensity and technical intensity of enterprises have a positive and significant impact on overseas investment patterns, that is, higher marketing intensity or technical intensity will prompt enterprises to preferentially choose wholly-owned mode. Formal institutional distance and experience can moderate the relationship between creativity and investment mode to some extent, while informal institutional distance has no significant moderating effect on creative assets and investment mode. Three configurations can induce firms to choose the wholly-owned mode, and only one configuration can induce firms to choose the joint venture mode. This study lays a theoretical foundation for enterprises to enter the overseas market.

Franchising as a form of entrepreneurial activity in Ukraine: realities and prospects

The article is devoted to the study and analysis of franchising as an effective tool for entrepreneurial activity. The state and prospects for the development of the franchising business model in the Ukrainian economy have been studied. Before the full-scale invasion of russia into the territory of Ukraine, the franchising market was developing dynamically in almost all sectors of the economy, despite the coronavirus crisis. In recent years, franchising has become the most popular in Ukraine in the field of consumer services, public catering and retail trade. The franchising market provides a great advantage for the development of the national economy. The current state of franchising in Ukraine, its positive aspects and opportunities for future growth are revealed. It can be the beginning of the development of small and joint ventures that will focus on innovation. Like any form of cooperation, franchising has its advantages and disadvantages that need to be taken into account. Now the development of the Ukrainian economy is a sensitive issue due to the war started by russia. Without activity in the economic sphere, the full functioning of the state is impossible. As a result of the military conflict, Ukrainian enterprises began to expand in Europe, which created the basis for the formation of a market for Ukrainian franchises. In safer regions of Ukraine, relocated businesses received a significant increase in income. With the stabilization of the situation in the country, entrepreneurs will have the opportunity to open their own businesses. In general, the Ukrainian franchising business offers ample opportunities for further growth and development. Entrepreneurs who understand the benefits of franchising and know how to effectively use its potential can achieve success in both domestic and international markets. However, it is important to carefully select franchisees, conduct a detailed analysis of the terms of the deal before launching the business. Despite the existing difficulties in implementing a franchising project, the number of “quality” franchises and conscientious franchisors in Ukraine is increasing every year. New initiatives are emerging that are successfully developing not only in Ukraine, but also abroad. This indicates that in the near future, the franchising market in our country will move to a new stage of development.

WE economy: Potential of mutual aid distribution based on moral responsibility and risk vulnerability.

Reducing wealth inequality is a global challenge that requires the transformation of the economic systems that produce inequality. The economic system comprises: (1) gifts and reciprocity, (2) power and redistribution, (3) market exchange, and (4) mutual aid without reciprocal obligations. Current inequality stems from a capitalist economy consisting of (2) and (3). To sublimate (1), the human economy, to (4), the concept of a "mixbiotic society" has been proposed in the philosophical realm. In this society, free and diverse individuals mix, recognize their respective "fundamental incapability," and sublimate them into "WE" solidarity. Moreover, the economy must have a moral responsibility as a co-adventurer and consider its vulnerability to risk. This study focuses on two factors of mind perception-moral responsibility and risk vulnerability-and proposes a novel wealth distribution model between the two agents following an econophysical approach, whereas the conventional model dealt with redistribution through taxes and institutions. Three models are developed: a joint-venture model in which profit/losses are distributed based on their factors, a redistribution model in which wealth stocks are redistributed periodically based on their factors in the joint-venture model, and a "WE economy" model in which profit/losses are distributed based on the ratio of each other's factors. A simulation comparison reveals that WE economies are effective in reducing inequality, resilient in normalizing wealth distribution as advantages, and susceptible to free riders as disadvantages. However, this disadvantage can be compensated for by fostering fellowship and using joint ventures. This study presents the effectiveness of moral responsibility and risk vulnerability, complementarity between the WE economy and joint economy, and the direction of the economy in reducing inequality. Future challenges include developing an advanced model based on real economic analysis and economic psychology and promoting its fieldwork for worker coops and platform cooperatives to realize a desirable mixbiotic society.

Challenges in Global Access to CAR-T cells: an Asian Perspective.

The use of cell therapy for clinical applications has seen a dramatic increase in recent years, primarily in oncology, especially with the use of chimeric antigen receptor (CAR) T-cell therapies. However, there are some barriers to the widespread adoption of CAR-T cell therapies globally, primarily because of the high cost of manufacturing these cells and clinical infrastructure considerations. We reviewed the different strategies adopted across Asia to implement CAR-T cell therapy and found that these included patient assistance programs, close engagement with funders, cost-effectiveness studies, on-site manufacturing of CAR-T cells, and joint ventures between local partners and foreign pharmaceutical companies. Although on-site manufacturing can reduce the cost of genetic engineering and expansion, it does not address many other hidden costs and quality considerations. Future growth in large-scale regional manufacturing, facilitated by cutting-edge science and innovation, could reduce costs through economies of scale and facilitate the eagerly needed global access.

Materiality Judgements: Research on Listed Companies’ Judgements on Material Joint Ventures and Associates in China

Materiality Judgements: Research on Listed Companies’ Judgements on Material Joint Ventures and Associates in China

ОСОБЛИВОСТІ РОЗКРИТТЯ ІНФОРМАЦІЇ У ФІНАНСОВІЙ ЗВІТНОСТІ ЗА МІЖНАРОДНИМИ СТАНДАРТАМИ

In Ukraine, quite a few enterprises prepare reports in accordance with international standards: large enterprises, public joint stock companies, insurance companies, private pension funds, and others. The article provides statistical data on the number of enterprises that are required to prepare reports in accordance with international standards by type and year. The main motivation for the decision to switch to international financial reporting is the need to attract foreign investment in the company's operations. The most expensive assets of such enterprises are usually fixed assets, which are available at each enterprise and, accordingly, depreciated. The start date of depreciation under national and international standards is different. The proposed sequence of actions in recalculating the amount of accrued depreciation of fixed assets as of the date of transition to international standards will allow to reliably assess their carrying amount. The paper describes the peculiarities of preparing notes to the financial statements in accordance with international standards. It is established that the financial statements prepared in accordance with international standards are significantly expanded in relation to the financial statements of Ukrainian enterprises prepared in accordance with NAR(S). The main indicators in the notes to the financial statements prepared in accordance with IFRS of many companies are similar. However, some companies highlight specific features related to their core business. Each analysed company, in addition to the accounting policy, discloses in detail in the notes those accounting items that best characterise its business activities. It was found that some of the analysed companies in their accounting policies for fixed assets do not comply with the minimum terms of their use provided for by the Tax Code of Ukraine, which leads to misstatement of financial statements. From year to year, the number of Ukrainian companies preparing financial statements in accordance with international standards is increasing due to legal requirements or business motives: entering the foreign market, searching for and attracting foreign investors, establishing joint ventures, etc. Financial statements prepared in accordance with IFRS allow for a broader presentation of information about the company's activities, in particular, by using a taxonomy and expanded presentation of information about the company's activities in the notes.