Joint Venture Operations Research Articles

Корпоративная природа совместных хозяйственных организаций, действующих в СССР

Introduction: the paper examines the forms of participation of Soviet organizations and enterprises in joint economic associations both outside the USSR and within its territory. The author notes that the determination of the legal status of joint economic organizations in the USSR was based on the stable legislative precedents that developed in the early 20s of the twentieth century. In modern conditions of constantly expanding comprehensive mutual cooperation between countries, it is important to use the experience of creating joint organizations, enterprises, firms of various economic integration, one of the forms of connecting their national resources and the closest direct interaction in the field of material production in the interests of each of the contracting countries. The purpose of the work is to conduct a scientific analysis of the corporate nature of joint ventures as one of the forms of integration of economic resources of countries involving the USSR. Methods: using the method of system analysis, on the basis of the regulations and the practice of their application, the main legal problems arising during the creation and operation of joint ventures are analyzed. Results: in the course of the study, the theoretical and practical problems are identified that are directly related to the legal regulation of the creation and operation of joint economic organizations with other countries within the territory of the USSR. The author identifies the existing gaps in the legislation of the USSR. Thus, nowhere was it stipulated in which areas of the economy joint ventures involving foreign capital could be created. Meanwhile, in all countries of the world, this plan contained certain restrictions. In addition, neither in the special legislation nor in the norms to which it directly or indirectly refers, a full definition of the legal status of the joint venture is given. The indications that joint ventures are legal entities and the principles of their responsibility are only elements of the status, but they are not yet the status itself. Conclusions: joint ventures had a traditional model of a trading partnership and a company in their several modifications. For all forms, the recognition of this economic organization as a legal entity of civil law of the USSR, its economic isolation and the inclusion of such an organization in the general system of the economic mechanism of the USSR was common.

Improving the Joint Venture Relationship and Working Culture in the Nigeria Oil & Gas Industry

The focus of this research is to investigate the working culture and the relationship between joint venture (JV) partners in the Nigerian oil industry and its impact on JV project performance. The major international oil companies (IOC) having JV with the Nigeria National Petroleum Company (NNPC) in Nigeria are ExxonMobil, Royal Dutch Shell, Total, Chevron, and ENI. An organizational working culture can be said to be the organization’s belief system, thought processes, the attitude of the employees, their ideologies, and the organizational principles of doing things. The research methodology used is a qualitative questionnaire based on a systematic random sampling of targeted participants both in and out of the Nigerian oil and gas industry. The research analyzes the root cause of the inefficiency experienced in the Nigerian oil industry, which is responsible for JV project delays, recent divestment by the IOCs, frequent community-related work stoppages at JV project sites, sabotage of oil pipelines, and the un-restfulness in the Niger Delta area. The research work is intended to inform the need for cultural change in JV operations in Nigeria oil and gas industry by providing information on the existing JV working culture, partners relationship under the current joint operating agreement (JOA) vis a vis best global practices and to make recommendations to the Nigerian populace especially the new board of director that will be appointed early 2022 following the new petroleum industrial bill (PIB) that has just been signed into law. This article is to provide information for the required restructuring and define the effective and efficient relationships and working culture under a new JOA. The result obtained established the fact that the existing working culture and relationship between the JV partners in the Nigerian oil and gas industry are not only unsustainable but unfit to deliver individual or joint venture interest. The JV operations must be incorporated as a legal entity having its own organization, dedicated management, and a workforce that will develop a positive working culture focused on achieving the JV goals and objectives.

European experience of cross-border interaction in innovative development of enterprises

Leading experts of the world have been studying the issues of cross-border interaction for a long time, and it should be noted that the issue acquired particular importance during the period of European integration. This is a priority in ensuring the security of the state, the formation of a national innovation system, the creation and operation of joint ventures, the development of industries based on innovations. The study identified the main problem that is relevant in the period of European integration, in particular, cross-border interaction of participants in the innovative development of enterprises. The peculiarities of cross-border interaction in the process of functioning of joint ventures based on innovations, including through the development of scientific and industrial parks, were highlighted in their scientific works by outstanding specialists. The problems of the functioning of joint ventures on an innovative basis, including through the creation of organizational forms of innovation, actively studied by scientists, have been identified. However, it requires more detailed further study, in particular, in the development of proposals for improving legislative and other regulatory legal acts on the activities of industrial parks, which can be mechanisms for the innovative development of industry. The statement of tasks consists in defining the basic principles of cross-border interaction in the direction of creating joint ventures on an innovative basis, as well as developing proposals for improving legislative and other regulatory legal acts for the development of special forms of organizing innovation. The aim of the study is to determine the features of cross-border interaction, taking into account the specifics of international experience in the functioning of joint ventures in the field of innovation. The main methods that were used in the research process are analysis, statistical, comparison, legal regulation. The international experience of the peculiarities of the development of cross-border interaction of the countries of the European Union is generalized. The positive aspects of innovative development and the factors constraining development are identified. Consideration of joint ventures in the context of European integration is a significant legacy. Considerable attention is also paid to the development of industrial parks as special forms of organizing innovative activities. Ways of cross-border interaction are proposed. Proposals have been developed to improve cooperation in industrial, scientific and educational spheres in the context of European integration. The field of application of the research results is socio-economic development.

International experience of convergence processes towards the creation of joint ventures based on innovation

The issues of convergence, which are considered as the convergence of the corresponding parameters of the development of regions and countries of the world, have been studied by economists for a long time. The issue acquired particular importance in the period of globalization. This is a priority in ensuring the security of the state, the formation of a national innovation system, the creation and operation of joint ventures, the development of industries based on innovations. When carrying out the research, the main problem that is relevant in the period of globalization was identified - convergence processes towards the creation of joint ventures on an innovative basis. The peculiarities of convergence processes in the direction of the functioning of joint ventures on the basis of innovations, including through the development of scientific and industrial parks, clusters, were highlighted in their scientific works by outstanding specialists. The problems of the functioning of joint ventures on an innovative basis, including through the creation of organizational forms of innovation, which are actively studied by scientists, have been identified. However, it requires more detailed further study, in particular in the development of proposals for improving legislative and other regulatory legal acts on the activities of joint ventures, scientific, industrial and technological parks, clusters. They can be mechanisms for the innovative development of industry. The statement of tasks consists in defining the basic principles of convergence processes in the direction of creating joint ventures on an innovative basis, as well as developing proposals for improving legislative and other regulatory legal acts on the development of special forms of organizing innovative activities. The purpose of the study is to determine the features of convergence, taking into account the specifics of international experience in the functioning of joint ventures and special forms of organizing innovation. The main methods that were used in the research process are analysis, statistical, comparison, and legal regulation. The review of international experience of the features of the development of convergence processes in the countries of the European Union is carried out. In particular, this applies to the group of countries of «innovation leaders», which include Sweden, Denmark, Finland and the Netherlands. The positive aspects of innovative development and the factors hindering development are identified. Consideration of joint ventures on the territory of Ukraine and China in the context of convergence is a significant achievement. Considerable attention is also paid to the development of special forms of organizing innovative activities. Ways of cooperation between Ukraine and China are proposed. Proposals have been developed that will help improve cooperation in industrial, scientific and educational spheres in the direction of the development of Ukrainian-Chinese cooperation. The field of application of the research results is socio-economic development.

PUBLIC-PRIVATE LEGAL RELATIONS IN THE AUTOMOTIVE INDUSTRY OF KAZAKHSTAN AND RUSSIA: COOPERATION AND INTERACTION OF THEIR AUTOMOBILE FACTORIES IN THE SPHERE OF FOREIGN ECONOMIC ACTIVITY DURING THE RECOVERY PERIOD

This article analyzes the legal forms of public-private relations in the automotive industry in the Republic of Kazakhstan and the Russian Federation. The automotive industry is a part of the transport engineering industry, which consists of a number of sub-sectors in the form of railway, aviation, sea, river, and pipeline transport. The author distinguishes the content and principles of public-private legal relations that form the basis of the Russian and Kazakh laws on public-private relations. The public-private partnership, laid down in the law, usually implies a social project, which must be implemented at the expense of financial investments of a private company and the relevant state body. The state body may otherwise determine its participation in the implementation of this project. The specificity and difference between public-private relations and public-private partnership, in which the relations between the automotive engineering industry and the state are formed, is that there are no separate projects. Public-private relations are formed between the entire transport engineering industry (its factories and enterprises) and the state represented by the relevant ministry of industry of Russia and Kazakhstan. The Russian and Kazakh states subsidize this industry, which consists of private-joint-stock automobile plants, credit them, provide them with tax and customs privileges and preferences, assist in the creation and operation of Kazakh-Russian joint ventures in the automotive industry, and in return they receive significant taxes. Analyzing the legal aspects of foreign economic activity of automobile industry enterprises, as well as actions to restore the economy of Kazakhstan and Russia, and their auto industry in connection with the coronavirus pandemic has required using the following methods: the comparative legal method, systemic analysis, dialectic method, and the method of legal projection.

The Legislative Regulation of the Status of Joint Ventures in the USSR

Introduction: the paper is devoted to the joint ventures, international economic associations established and operating in the territory of the USSR. It is one of the first studies in the modern legal literature devoted to the analysis of the Soviet legislation determining the status of these types of economic entities. The aim of the study is to determine the legal nature of the joint venture as a legal entity, to identify the features of its legal capacity from the perspective of the civil law theory and practice. Results: the main problems that arise in the creation and operation of joint ventures, as well as the existing gaps in the Soviet legal space in the mechanism of the legal regulation of the organization and activities of entities with foreign participation are revealed. The peculiarity of the policy of the Soviet state in relation to business corporations, including joint ventures and international business associations, was a combination of administrative, legal and civil law methods of regulating their organization and activities.

Establishing and Financing of a Joint Venture

This article deals with a Guide prepared by the United Nations Economic Commission for Europe concerning east-west joint ventures. The publication focusses on the issues arising in the establishment and operation of east-west joint ventures in those European members countries of the Council for Mutual Economic Assistance (CMEA) which now allow this form of industrial co-operation in their respective territories — namely, Bulgaria, Czechoslovakia, Hungary, Poland, Romania and the Soviet Union. In parallel with that Guide, the author exposes the importance and the contents of the contract itself with its main provisions.

The Impact of International Joint Venture on Local Economy: A Case Study of Hero Honda

The Indian two-wheeler industry has undergone a long journey since its humble beginning in the late 1940s. During these eventful years, it has experienced great advancements in technology, tremendous increments in production volume and opening up of the market for global trade. India has now emerged as a global leader in two-wheeler production and trade. A key factor behind the creditable progress of this industry has been the operation of several international joint ventures (IJVs) such as Kawasaki Bajaj, TVS Suzuki, Kinetic Honda and Hero Honda. Of all IJVs, the partnership between Hero and Honda has been the longest and perhaps the most remarkable too. This article gives a brief overview of the Indian two-wheeler industry and presents a glimpse of the IJVs therein. It analyzes the impact of Hero Honda case, in detail, to showcase how a local manufacturer can team up with a global player and still achieve a synergy between their core competencies for enhancing efficiency, productivity and quality. The article narrates the transition from interfirm competition to cooperation and aims at finding out how management innovations by both the partners can help reduce conflicts of interest, avoid cannibalization of the products of individual firms and derive mutual benefits by aligning their individual targets to a common goal of market success.

Design in Mainland China

Design in Mainland China

An assessment of Kalgoorlie Consolidated Gold Mines and Boddington Gold Mine water sources and proposed water auditing framework underpinning improved water allocation compliance and reporting

Water auditing and water conservation measures are fast becoming the quantitative tools for water balance reporting in the mining and minerals processing sector. Therefore, this paper was written to describe the process of water auditing in a goldmining environment and to contribute towards building an appropriate water management framework for The Cooperative Research Centre (CRC) for sustainable resource processing (CSRP). The research will assist with the assessment of water balances in mining and hydrometallurgical processes and ongoing probabilistic modelling for Newmont Mining Corporation, its wholly owned gold mines, and its joint venture operation of Kalgoorlie Consolidated Gold Mines (KCGM). Kalgold or KCGM are the managers of a joint venture project between Barrick Australia (50 per cent) and Newmont Mining Corporation (50 per cent) at Kalgoorlie, Western Australia (WA). Boddington Gold Mine (BGM), Western Australia, will commence operations this year and manage the new goldmine expansion project. BGM is 100 per cent Newmont owned and will operate to continue mining gold and copper from the existing (BGM) site that was decommissioned in 2001.

Perceptions of MNC management: Local parent sensemaking in international joint venture process

efficiency and equity. Second, it infers theoretical lessons from a case study of a German-Czech IJV. The empirical findings highlight the role of critical events that stimulate sensemaking processes, which in turn politicise the IJV and create different dynamic patterns. Der vorliegende Artikel konzentriert sich auf die Art und Weise der Interaktionen zwischen multinationalen Unternehmen (MNUs) und lokalen Mutterfirmen beim Aufbau und Betrieb von internationalen Joint-Ventures (lJVs). Er tragt in zweifacher Hinsicht zur Theorie von IJV bei: Erstens wird ein vorlaufiger integrativer Rahmen entwickelt, der besonderen Wert legt auf die Rolle der Ausgangslage, der vielfaltigen Prozesse sowie den Auffassungen der Mutlerfirma bezuglich Effizienz und Gleichheit. Zweitens werden theoretische Erkenntnisse abgeleitet aus einer Fallstudie eines deutsch tschechischen IJV. Die empirischen Ergebnisse verdeutlichen die Rolle kritischer Ereignisse, welche die Sinnfindungsprozesse stimulieren, was wiederum das IJV politisiert und verschiedene dynamische Muster hervorbringt.

Investigation of contextual factors in shaping HR approaches and determining the success of international joint venture projects: Evidence from the Canadian telecom industry

Performance problems in international joint venture (IJV) operations have been linked to inadequate attention to human resource issues during the formation stage of IJV projects. However, little research has considered how HR approaches are brought to the strategic agenda during the IJV formation stage, and no research has investigated the factors that facilitate or impede the shaping of these HR approaches to improve IJV success. This paper analyzes seven IJV case studies and reveals some contextual factors that facilitate (or impede) the consideration of HR approaches in IJV projects, more specifically at the formation stage. Our results suggest that the shaping of HR approaches in the IJV formation stage is influenced by key individual, organizational, and cultural factors such as composition of the IJV team, firm’s distribution of power and decision-making style, organizational frame of reference, and socio-cultural distance between IJV partners.

Correcting for dilution of rakes processed sequentially from multiple mines at BHP Billiton Iron Ore Newman Joint Venture operations

At BHP Billiton Iron Ore operations, run of mine ore from the several Newman Joint Venture (NJV) mines is railed in 12 kt rakes to Port Hedland. Rakes are processed sequentially, with the lump and fines components from each rake sampled after crushing and screening. The grade of ore from the individual mines varies around consistently different means. Although a discrete sample is attributed to each rake, the sample contains some material from the following and/or the preceding rakes due to dilution by ore from the neighbouring rakes during the dumping, screening and crushing processes. Individual rake grades at the port are therefore biased according to the mine sources of adjacently processed rakes. Dilution does not affect the grade of the overall NJV product or the accuracy of port stockpile grades, however it does limit the ability to use port rake grades to review the quality performance of individual mines and provide meaningful lump–fines algorithms and port–mine biases for individual mines, information that is useful when scheduling ore for mining. A non-linear regression model has been used to estimate the average dilution from the preceding and following rakes. It has been shown that the lump and fines samples for 12 kt rakes are each diluted within the Port process with about 8˙3% of the sample coming from the preceding rake and ∼3˙6% from the following rake. This can, bias the reported rake grade by up to 1% iron. The results of this analysis have been incorporated into the daily grade scheduling system to provide more accurate individual mine grade data and consequently better decision making.

Structural and social dimensions of an international joint venture

PurposeThe purpose of this paper is to advance knowledge in the area of international joint ventures, more specifically in China.Design/methodology/approachThe analysis considers events prior to 26 April 2006, when the joint venture was announced. Organizations involved are considered as units of analysis for the current study. Using Yin's methodology for exploratory theory development, this study builds on existing theories through a case study that explores the execution of international joint ventures. This study analyzes holistic data in relation to Hypor Canada, Sichuan South Hope Company Ltd, and Shangdong Liu He Group Ltd.FindingsThe findings suggest that strategic intents and resources need to be aligned between parties involved, and that foreign‐based North American firms should cultivate both the structural and social dimensions of a relationship with a Chinese‐based company.Research limitations/implicationsThe sample was limited to one case in swine genetics. The findings of this research may only be fully applicable for explaining joint venture operations in this particular area.Practical implicationsThe Hypor and New Hope agreement shows that a project needs to address both structural and social dimensions at once. Managers and marketers need to be aware of this and to consider both dimensions when assessing situations that may lead to a new joint venture.Originality/valueFor various reasons, many joint ventures between North American and Chinese companies fail. On 26 April 2006, however, Hypor Canada, a leader in swine genetics headquartered in Regina, Saskatchewan, signed what would prove to be a successful joint venture with China‐based New Hope (Sichuan South Hope Company Ltd). The agreements with Sichuan South Hope Company Ltd (New Hope) and Shandong Liu He Group Company Ltd (Liu He) were at the production and distribution of breeding pigs in China.

Internet and self-regulation in China: the cultural logic of controlled commodification

This article examines the implementation of self-regulation in China’s internet sector through the forging of subtler control relationships between media corporations and the state. It uses three case studies of domestic and global media joint venture operations in the converging areas of online and mobile gaming to show how media commercialization is balanced by control modalities to reaffirm the government as a central agency in the gradual transition to a socialist-market economy. Within these processes of controlled commodification, the government uses trust-building to establish cultural leadership as a way of protecting political and social cohesion while benefiting from global economic integration. The study reveals the cultural logic, or hegemonic norm, that underpins the new bottom-up business model for media management in China. Underscoring these processes, however, is a quasi- Sartrean irony of ‘winner loses’ logic, whereby increased transparency or access to information is limited to entertainment and not a substantially greater say for citizens in the formulation of China’s future.

Impact of Management Control Systems' Intensity of Use on Joint Venture's Performance: An Empirical Assessment

Studies of the impact of control on joint venture (JV) performance showed non-convergent results (Beamish and Banks, 1987; Boateng and Glaister, 2002; Pangakar and Klein, 2004). This paper contributes to the discussion of management control systems in international JVs (Groot and Merchant, 2000). To answer if intensity of use of management control systems play a role in perceived JV performance, I used a contingent model to test data from 65 JVs in the motor and auto parts industry. The impact on management control systems of some factors varies due to the role that each partner plays in the JV that is shaped by the assets committed. Considering that most of the JVs in this industry are formed by a foreign company coupled with a local firm, it is reasonable to observe that the larger the technological or the local market experience of the JV foreign and local partners respectively, the more intensely the information is used to manage the JV. High performers use management control systems more intensively to overcome the two main sources of uncertainty faced by the JV: local market conditions and product/process technology. Searching for alternative explanations of JV performance it was found that the better the performance the more the partners' trust and cultural fit (Das and Teng, 2001), however the results of partners strategic fit was not conclusive. These findings justify the assertion that management control systems are used to give transparency to JV operations and JV management team decisions, reinforcing the initial trust between the partners, and between them and the JV management team (Choi & Beamish, 2004; Inkpen & Curral, 2004). In summary this paper identifies three uncertainty reduction mechanisms that work in international equity JVs to improve its performance: management control system, trust and partners cultural fit.

Lion to streamline joint venture operations in Taiwan

Lion to streamline joint venture operations in Taiwan

Joint Ventures in English and German Law: Papers Presented to the First Oxford Anglo-German Law Conference, Autumn 1999. Edited by Eva Micheler and D.D. Prentice. [Oxford: Hart Publishing. 2000. xx, 181 and Index 3pp. Hardback £45 net. ISBN 1–84113–106–7.

This book comprises papers presented at the first Anglo-German Law Conference organised by the Oxford Law Faculty in autumn 1999. Written by specialists, including members of leading English and German Law firms, the text provides a richly textured insight into the nature and operation of joint ventures underpinned by an informed commentary as to the distinctive considerations brought to bear under two highly developed systems of law.

Affording Universal Higher Education

Can we achieve universal or near–universal higher education within the next two decades, without a massive increase in government investment in higher education? It is argued that the answer is yes, with greater involvement of the private, for–profit sector, or by encouraging existing not–for–profit universities to open for–profit campuses, at which the emphasis is on high–quality and convenient undergraduate teaching, with little or no research, and a concentration on high–demand, low–cost disciplines. This position requires us to recognise that research engagement is not conceptually essential for an institution to count as a university, understood both historically and through international comparison. Rather, this assumption operates as a significant entry barrier to new, low–cost entrants. This paper provides a case study of the ways in which Central Queensland University has extended its operations by developing surplus–generating campuses through joint–venture operations with the private sector, and argues such an operation could just as easily be developed as a free–standing, for–profit mode of university degree delivery – provided that present, artificial, protectionist limitations on the use of the name ‘university’ are removed. Degree programmes of such institutions should, of course, be subject to the same quality assurance standards as apply to existing universities.

The Changing Nature of Sino-Foreign Business Relationships, 1842-1941

During the second half of the nineteenth century, foreign business enterprises relied considerably upon the service of compradors to extend their economic interests in the Chinese economy. Utilised initially to overcome the barriers presented by language difficulties, compradors were employed by western firms to undertake a variety of tasks covering both supervisory and co-ordination functions. With the growth of industrial interest by foreign businesses during the twentieth century, however, the comprador system fell into disrepute and during the 1930s was largely abandoned.This paper employs research based on primary source materials to trace this institutional transition for two specific cases. The Kailan Mining Administration (KMA), whose origins are to be found as an Anglo-Belgian free-standing company, took control of both the Kaiping and Lanchow coal mines in 1912. In order to expand its sales, the company employed the services of the comprador Liu Hongsheng who successfully built up the company’s market around Shanghai. In doing so, however, Liu became an important force in coal distribution in his own right, leading to tensions that were resolved through the creation of a joint venture operation called the Kailan Sales Administration (KSA) in 1925.British-American Tobacco (BAT) was set up in 1902 to administer the foreign markets of the American Tobacco Company and Britain’s Imperial Tobacco Company. In China, a distribution system was created using many Chinese collaborators of whom two were of particular importance. Wu Ting Seng, a member of the Chinese gentry, played a crucial intermediating role for the western company in a variety of its dealings with the Chinese. Cheang Park Chew, on the other hand, was an influential Cantonese merchant whom BAT used to distribute its goods throughout the Shanghai region. In both cases, BAT chose to alter the institutional arrangements with these collaborators from the contractual form to joint venture partnerships, unsuccessfully in the case of Wu, but with phenomenal success in the case of Cheang’s mercantile enterprise, the Wing Tai Vo Tobacco Corporation.