Joint venture

of these articles describes the form of business organization Joint venture. For the singer-songwriters see joint venture (singer-songwriters).

Under the term joint venture [ˌdʒɔɪntˈvɛntʃə] (German joint undertakings) one understands co-operation about societies, at which it comes to the establishment of a new, legally independent department,to both establishment companies with their capital are involved. Beside the capital the establishment companies bring usually a substantial resources portion of technology, to patent rights, technical and/or. Marketing know-how and/or equipment. A joint venture is characterized, i.e. by two aspects co-operation and autonomy.

Table of contents

of motives for establishment

with the motives for the establishment of Joint venture becomes between internal, competition-referred and strategic objectives differentiated.

motives from internal view

this are:

  • the dispersion of the risks and costs
  • the safety device of existing resources,
  • the use of scale yields,
  • the entrance to new technologies and markets and
  • the promotion of coworkers by the assumptionof responsibility in a joint venture (other one responsibility is extracted)

. and the promotion of other smaller companies

of motives from competition-referred view

from competition-referred view Joint venture is above all important, because one can steer industry developments and above all speed advantages oppositeCompetitors to obtain knows. In addition can be reacted to the increasing globalization faster.

strategic goals

as strategic goals are seen the creation and use of synergies, the transfer of technology and the extended possibility of the diversification. To base a further motive a joint venture,the legal situation can be in a country. Some countries like the People's Republic of China do not permit the establishment of pure (100%igen) subsidiaries of foreign companies in certain industries at all, in others only under the edition of official permission. Here Joint ventures with native companies are often the only oneTo seize possibility for foreign companies on the respective market foot.

strengths of Joint venture

co-operation and autonomy are also the substantial strengths of Joint venture. Co-operation results from it that two or several enterprises a joint venture base and lead, during theseUnit legally and organizational clearly detached by the respective partner enterprises acts and to treat is, speaks is autonomous. An example is the co-operation of Fujitsu and Siemens AG, which its computer sections folded up.

danger potential of Joint venture

the establishment of JointVentures saves naturally also dangers in itself. One can recognize this easily, if one regards Joint more exactly the venture system: With respect to the Joint venture system one differentiates levels. On the first level the partners are and on the second level are the unit. Conflicts can on the partner level arise if one for example the objective not clearly defined or the joint venture unit has a different position and importance in the creation of value chain of the individual partners. In addition, in the relationship the Joint venture unit to the establishment companies can do itto problems come, because from the autonomy the Joint venture unit arises a high requirement at control and integration mechanisms. A substantial danger of Joint venture lies in it that Firmeninterna are appropriate for the Joint venture partner indirectly over the common daughter also openly, on other markets or inthe future a potential competitor is.

joint venture ≠ Joint venture system

around mistakes to avoid and Joint venture to understand be able to light up is usually necessary it to direct the view not only toward the again created society but also the behind it-standing relations network.Therefore one differentiates joint venture “, which designates the new unit between the terms „, and which term „Joint venture system “, which means the entire surrounding field of the Joint venture unit and the establishment enterprises.


  • foam castle, Harald: International Joint venture: Management, taxation, contract design, 1999
  • Harrigan, KathrynRudie:Managing for joint venture Success, 1986 ISBN 0-669-11617-3
  • G. J. B. CC rehearses Rüling: Joint venture and Joint venture management, 2001

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