Causes for Joint Venture Failure


Common Reasons for Joint Venture Difficulties





Research indicates that 50 to 70% of all joint ventures fail. Not many CEOs of joint ventures characterized their venture as "very successful".

Below are some common reasons for joint venture difficulties.


▪ The philosophy governing expectations and objectives of the joint venture is unclear  >>>

There's an imbalance in the level of investment and expertise brought to the JV by the two parent organizations  >>>

The senior leadership and management teams for the JV receive inadequate identification, support, and compensation  >>>

The joint venture partners possess disparate, and often conflicting corporate cultures and operational styles  >>>   >>>

The joint venture's size is modest compared to the two parent organizations  >>>

Losing Organization: 9 Signs

Cultural Differences