Implicit incentives of international joint venture managers – an introduction

Abstract

Joint ventures remain to be one of the most important forms of organization to enter a foreign market. Especially in industries that are considered vital for the host country in terms of national security, technology development, and stability of the economic system, a joint venture with a partner firm from the host country may even be the only possible form for foreign investors to carry out their business in a country. On the one hand, complementary competencies of the partner firms make it possible to generate extra benefits for all equity investors. On the other hand, corporate governance is challenging with multiple major equity holders, each with his/her own agenda, interests, and national identity.