International joint ventures as an international business mode : a study of Australian-Indian joint ventures in India

In recent years, India, the world's second most populous country, has been emerging as one of the fastest growing economies with enormous market potential. Since the beginning of India's economic liberalisation in the late 1980s, it has been attracting foreign investment from around the world. However, for many foreign companies, forming international joint ventures (UVs) with a local partner remains the preferred international business mode for entering the Indian market. Based on nine AustralianIndian UVs, this thesis empirically examines three major areas of the UV literature, viz., factors influencing the motivation to form UVs with a local partner, the complexity and the extent of the firm's involvement in the UV formation process and the factors responsible for UV success during the implementation stage. Multiple case study method was used to conduct the research. A combination of deductive and inductive processes was applied to capture the complexity and dynamism of the real world situation. Primarily, the context of the research is presented as it is reflected in the extant literature and the available market information. The conceptual framework, research question and proposition sets were framed on the basis of this research context. In-depth, face-to-face interviews were conducted with the management of nine UVs, their Australian parents and their Indian hosts. Prior theories were employed as templates for measuring outcomes. Direct observations, company documentation and other secondary information were used to assist in the interpretation of the primary data. This research has determined that UVs are an important means of Australian companies doing international business in India. It has established that the motivation to select IJVs as an international business mode is influenced by a host of environmental and organisational-specific variables. However, the extent of this influence varies with the relative importance of each of these variables. This study also has demonstrated that the UV formation process between an Australian company and an Indian host is a complex and time-consuming one. It is ascertained that the Australian-Indian IJVs face fewer difficulties during the implementation stage than anticipated earlier at the IJV motivation stage. Nonetheless, the research has confirmed the need for assistance from local partners in overcoming any environmental or organisational-specific difficulties. In addition, this research offers a range of implications relevant to policy analysis and development, management practice and theory development. Possibilities of further research, based on the findings reported here, are suggested.