Key Criteria for Selecting a Joint Venture Partner on Emerging Markets

This case study paper focuses on defining the key criteria for selecting a joint venture partner on emerging markets to minimize the risks of the partnership failure. The literature dealing with general partner selection criteria is rich. Only a little research was, however, conducted in terms of emerging economies. Therefore, the study combines a theoretical model with an empirical evidence to extend knowledge in this particular area. The literature review results in four main partner selection criteria, such as human resources (tangible resources), local market knowledge (intangible resources) as well as business and governmental networks. An empirical research was conducted through qualitative interviews to challenge the theoretical findings. The sample consisted of two leading Austrian manufacturing companies operating a joint venture in India. Although those participants confirmed that local market knowledge and networks are crucial on emerging markets, they accommodate different perspective in terms of tangible resources. Moreover, they add that company control and local partner’s international experience are fundamental.