Reading 4.2 Managing Alliances and Joint Ventures
Vladimir Pucik, Paul Evans, and Ingmar Björkman
In the late 1960s, the US-based chemical company Chemco (name disguised) decided to enter the booming Japanese market. However, Japan’s investment policies at the time precluded direct entry. Facing the choice between licensing and a minority joint venture (JV), the company decided to establish a 49:51 percent partnership with a well-known Japanese firm to build a local plant and set up distribution. Chemco would contribute technology in exchange for help in market access. Soon after its launch, the JV, led entirely by local managers, became the leader in its industry segment.
Later, the US parent decided to take ...
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