International Joint Ventures Among Developing Country Multinationals: The Case of Salinas Group-FAW

14 Pages Posted: 21 Feb 2014

See all articles by Miguel A. Montoya

Miguel A. Montoya

Instituto Tecnológico de Estudios Superiores de Monterrey

Date Written: February 19, 2014

Abstract

I study the determinants of the success of international joint ventures (IJVs) among developing country multinational companies. From the analysis of the case of the IJV between the Mexican conglomerate Salinas Group and the Chinese automobile producer FAW I conclude two points. First, IJVs among developing country firms reveal an implicit assumption of a tension due to helping an industry competitor and gaining market knowledge and technology. Second, IJVs among developing country firms reveal the unique challenge of having to face the perceived disadvantage of lower quality of products created by developing country firms.

Keywords: Alliances, International joint ventures, Developing country multinationals, Emerging markets, China, Mexico, Failure

Suggested Citation

Montoya, Miguel A., International Joint Ventures Among Developing Country Multinationals: The Case of Salinas Group-FAW (February 19, 2014). Available at SSRN: https://ssrn.com/abstract=2398630 or http://dx.doi.org/10.2139/ssrn.2398630

Miguel A. Montoya (Contact Author)

Instituto Tecnológico de Estudios Superiores de Monterrey ( email )

Av. General Ramón Corona No.2514
Zapopan, Jalisco, 45201
Mexico
523336693000 (Phone)

HOME PAGE: http://www.itesm.mx/wps/wcm/connect/Campus/GDA/Guadalajara/

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