A research study submitted in partial fulfillment of the requirements for the degree of Masters of Business Administration.

Research Studies Project Report (M.B.A.) - Asian Institute of Technology, 1992

Joint ventures are increasingly being used as a strategic organizational form in international as well as domestic businesses. The nature of the formation process of these joint ventures plays an important role in the subsequent success of the joint venture. By examining the experience of Atlas Mining, PERT Inc. and Nippon Carter K.K. (AP & N) Technologies Inc. during the joint venture formation stage, this research case study aims to identify and analyze the critical joint venture issues addressed by the partners. Partner selection, degree of top management commitment, fitness of the venture with each paitner's strategy, appropriateness of technology, choice of equity structure, sources of funds, organizational design and risk assessment emerged as the critical issues of the joint venture formation stage. Through qualitative analysis, it was found out that the prutners effectively managed these issues which resulted in the joint venture's smooth transition to the operational stage giving it a better chance of success. Guidelines were developed as a result of the research case study which may be helpful to finns wishing to pursue a domestic or international joint venture.