Managerial approach to joint venture business model and success factors

Joint Venture; is a business model which is based on establishment of an entity by two or more partners (legal entities) whether permanent or temporarily to conduct a business while continuing their own operations. In order to minimize the risks which acting in the local markets will bring forth, multinational corporations establishes joint ventures with the domestic corporations. By choosing this business model, a larger scale production is made by using the resources of both corporations and unit costs can be more scaled down.The accomplishment of the joint venture depends on the ability of individuals coming from different cultures to work together in harmony. The leading factor among the others which enhances such harmonization process is the establishment of a correct system (corporate structure). This business system is required for the purpose of establishing efficient communication by the partners, preserving the values of different cultures and measuring the performance with a variety of indicators.This work; is significant in the joint venture business model for suggesting the analysis of the enterprise with a well balanced success indicator (balanced scorecard) which is able to approach to the success and performance of the enterprise with all aspects in a holistic manner other than the traditional financial measurement techniques in addition to the harmony of different cultures.