Senior Partner & Managing Director; Global Leader, Global Advantage practice
International joint ventures, a form of partnerships between companies in emerging and/or established markets, are an important tool for companies interested in tapping into new growth opportunities—such as entering new markets or accessing new technologies—but which cannot or do not want to pursue them entirely on their own.
Joint ventures are still a proven mechanism to collaborate in established industries but are now increasing being used internationally to support growth in digital products and services. International joint ventures allows many of the benefits and rewards of a full merger or acquisition—with only a share of the risk, an option to exit, and limited consequences for partner organizations. The best of both worlds.
But the advantages of joint ventures can be offset by misaligned interests and business objectives, lack of commitment, unclear governance, problems with talent, and operational inefficiencies. It’s essential for international joint ventures to be carefully planned and managed along each of the five distinct stages of their lifecycles:
Companies from all industries are leveraging joint ventures to gain access to digital capabilities; develop new digital solutions; or provide digital solutions. For those companies exploring the possibility of an international joint venture, there are four digital trends to keep in mind: