Partner selection criteria in international joint ventures: perspectives of foreign investors from Asian NIEs of Malaysia and India

Sabrina Islam, M. Yunus Ali and Manjit Sandhu ()

Asia Pacific Business Review, 2011, vol. 17, issue 1, 25-43

Abstract: This study aimed to explore the partner selection criteria employed by foreign investors from the newly industrializing economies of Malaysia and India when forming international joint ventures in other newly industrializing economies and developing countries. Geringer's (1991) typology of task-related and partner-related selection criteria was used as a basis for determining the partner selection criteria employed by foreign investors from newly industrializing economies. The influence of issues such as past association, trust, communication, control and culture as well as the relevance of theories including the bargaining power theory, transaction cost theory and organizational learning theory on newly industrializing economies firms' partner selection process were also examined. This qualitative study revealed that newly industrializing economies firms' partner selection criteria are often influenced by firm characteristics, country and industry related factors as well as one or more of the examined issues and theories.

Date: 2011
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DOI: 10.1080/13602381.2010.520491

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