Managerial Motivations for UK-Czech Joint Ventures

Abstract

The paper examines the motives for the choice of the JV instead of other forms of investment (e.g. greenfield or licensing) in British investment in the Czech Republic. It is noted that despite popular belief, the level of uptake of JVs in the Czech Republic is low in comparison with greenfield investments. The paper identifies organisational motives (resource seeking, synergies, economic and historic), partner related motives and exogenous motives. The role of the partner in the choice of the entry mode is emphasised. Managerial implications: despite theoretical benefits of JVs to investor, these might not be accrued in practice due to the quality of the resource acquired and difficulties in management