Success predictor for international joint ventures in Vietnam
Abstract
Purpose
The purpose of this paper is to determine a success predictor for Vietnam‐based international joint ventures (IJVs).
Design/methodology/approach
Using the multiple case study method, seven successful IJVs in Ho Chi Minh City – Vietnam's largest and most economically dynamic metropolitan area – were examined by reviewing their business records and by personal interviews with senior management and staff. Two specific types of data collection procedures were applied: methodological triangulation (using multiple methods of data capture: in‐depth interviews, non‐participation observation during visits, and analysis both of companies' internal and external documents) and data triangulation (using a variety of data sources: spreading out during a 30‐month period and involved 75 in‐depth face to face interviews).
Findings
Successful IJVs in Vietnam usually use four popular control mechanisms. Action‐control, result‐control, and personnel‐control mechanisms co‐exist in a closely‐knit environment yet still influence each other in a process assisted by relationship control mechanism. As a condition for success, an IJV should have at least one control mechanism at a high level of importance with no control mechanisms positioned at a low level of importance.
Originality/value
Those who are building successful IJVs in Vietnam should first determine proper control mechanisms necessary for IJV success. It also proves useful and helpful if investors and local government use these results to jointly develop successful IJVs for the benefit of Vietnam's economy and society.
Keywords
Citation
Minh Tri, C. (2012), "Success predictor for international joint ventures in Vietnam", International Journal of Emerging Markets, Vol. 7 No. 1, pp. 72-85. https://doi.org/10.1108/17468801211197914
Publisher
:Emerald Group Publishing Limited
Copyright © 2012, Emerald Group Publishing Limited