Management problems in joint ventures and solutions

Strategic alliances became popular because of the improvement in the World. These improvements are so complicated to overcome for any company; therefore it requires cooperation between companies. High investment costs and short life cycle of products has increased the risk of investment. The needs for corporation between companies are getting more important because companies want to share the high risks and they need to get foreign capital and technologies. One of the most important strategic alliances is Joint ventures. It has lots of advantages, but it also brings so many problems. Management and cultural differences are the most important problems for joint ventures. Partners can leverage the negative effect of management differences by try to understand each other. The managers of the joint ventures have the main responsibility for compromising. The subjects, summarized above, are dealed with a whole in this study. The effects of cultural and management differences on Joint Ventures are studied and it is examined how the differences can be directed to the common goals of the firm, and which features a global manager must practice.