Discuss Paul Beamishs checklist for international joint vent

Discuss Paul Beamish’s checklist for international joint venture success. What do you think is the most important part of the checklist? Why? Is there anything you would add to the checklist?

Solution

International joint ventures are very important to gain the advantage of the competencies of each other. But, there are many other important factors that need attention before going for such strategic alliance. Paul Beamish gave a checklist as a formula of success for international joint ventures. He enlisted many factors that ranges from the sharing of objectives to compatibility in cultural differences. Some of the points of check list are as following:

According to Paul Beamish, International joint ventures are not only about coming together for completion of a common objective but also it ask more from each partner. It requires synergy that tells that output of joint venture must be more than the sum of their parts. It can only happen when partners complement each other in every aspects.

One of the most important factor in check list is related to cultural differences. Because, it is the biggest hurdle in building communication and synergy development in joint ventures. Lack of understanding and feeling of “Ethnocentrism” never bring partners together and very existence of joint venture comes in to danger.

I would like to add the behavioral traits of the management leaders and their commitment in the already broadened checklist.