Joint Venture Harvard Business Review

The largest 100 jvs currently represent more than 350 billion in combined.

Joint venture harvard business review. By ben gomes casseres originally in harvard business review this blog has gotten a lot of attention. A version of this article appeared in the july august 2020 issue of harvard business review. Early in the discussions about whether and how to form a joint venture perhaps as the very first significant issue to be resolved the potential joint venture partners will try to agree on the scope of the venture s business.

1 the financial and strategic materiality of joint ventures and rates of new joint venture formations varies considerably across industries geographies and companies. Being a minority partner however is also appealing in certain cases. In general industries such as upstream oil and gas mining refining and chemicals alternative energy and power automotive and high tech industrial tend to be quite joint.

When companies decide to pursue a joint venture jv a critical first step is determining the appropriate level of ownership and control. Jonathan hughes is a partner at vantage partners a global consultancy specializing in strategic. And a harvard business school study reveals that 30 of a sample of 1 100 joint ventures formed before 1967 between american companies and partners in other developed countries proved unstable.

Ibm used this staged exit structure when it sold its personal computer business to lenovo and so did lanxess when it folded its specialty plastics business into a joint venture with ineos in 2007. By ben gomes casseres webinar presented by harvard business review alliances partnerships acquisitions mergers and joint ventures are no longer exceptions who killed the ge model. Given a choice most companies would prefer to be the majority partner believing such a structure provides greater control and decision making efficiency.