International joint venture strategies and performance in the Baltic States

2015 ◽  
Vol 10 (1) ◽  
pp. 52-72 ◽  
Author(s):  
Jorma Antero Larimo ◽  
Huu Le Nguyen
Keyword(s):  
Joint Venture ◽  
Foreign Direct Investments ◽  
Baltic States ◽  
Content Type ◽  
Cost Leadership ◽  
International Joint ◽  
And Performance ◽  
The Baltic ◽  
Ijv Performance ◽  
Finnish Firms

Purpose – The purpose of this paper is to analyse investment strategies and performance of Finnish firms in their international joint ventures (IJVs) established in Baltic States. Design/methodology/approach – The paper analyse performance of IJVs in Baltic States based on the IJV theory, international business literature, and foreign direct investments in Central and Eastern Europe (CEE) literature. The analysed factors include firm, investment, and inter-partner relationship-specific factors. To examine the propositions the paper used ten IJVs established by Finnish firms in various Baltic States between the period 1991 and 2005. Findings – The results show that the level of uncertainties in the countries and the differences between partners are not related to firms’ commitments and the entry mode choice. Several Finnish firms preferred cost leadership to compete with other firms in the local markets. In most cases there was a positive relationship between the level of partners’ equity share, commitment to the IJV, and the level of trust between partners. The results indicated differences in the IJV performance depending on parent firms’ objectives, their competitive strategies, mode of entry, age of IJVs, control strategies, level of trust, and commitment between partners, as well as depending on the performance measures used. Practical implications – This study suggests four observations that managers may need to take into consideration to improve IJV performance in the Baltic States. First, cost leadership strategy help to increase IJV performance in terms of sales. Second, social control mechanisms and narrow control leaded to better performance than formal and wide control. Third, minority ownership by Finnish firms in IJVs leaded to better performance based on sales, productivity and total performance whereas majority ownership had leaded to better performance in terms of total costs. Finally, the results confirmed that commitment to the IJV operation and trust on the other partner are very essential factors to IJV performance. Originality/value – The study is the first one to analyse in more detail based on several cases the IJV strategies and performance of Finnish firms in the Baltic States. The analysed factors include several such factors which have not been analysed related to IJV operations in Baltic States (some also limitedly in the CEE context).

Collectivist values for constructive conflict management in international joint venture effectiveness

2018 ◽  
Vol 29 (1) ◽  
pp. 126-143 ◽  
Author(s):  
Alfred Wong ◽  
Lu Wei ◽  
Xinyan Wang ◽  
Dean Tjosvold
Keyword(s):  
Conflict Management ◽  
Structural Equation ◽  
Joint Venture ◽  
International Joint Ventures ◽  
Content Type ◽  
Constructive Conflict ◽  
International Joint ◽  
And Performance ◽  
Ijv Performance ◽  
Constructive Conflict Management

Purpose This study aims to identify mechanisms to manage conflicts that occur when organizations with different cultures, habits and experiences try to coordinate effectively in international joint ventures (IJV). This study proposes that partners can promote their joint venture performance to the extent that they rely on cooperative rather than competitive conflict management. This study further hypothesizes that adopting collectivist values strengthens relationships and thereby provides a foundation for cooperative conflict management. Design/methodology/approach The authors collected data for this study in Shanghai, which is currently the most attractive province in China for FDI (FDI Intelligence, 2014). In all, 75 pairs of foreign and Chinese managers at middle and senior levels, knowledgeable about the joint venture relationships, completed their respective questionnaires. Findings Results of the structural equation analyses support the hypotheses that collectivist values support cooperative conflict management that in turn facilitates joint venture learning and performance. In contrast, individualistic values promoted competitive conflict management which in turn frustrated IJV performance. Practical implications Results suggest that IJV managers can strengthen their venture by developing collective values and training such cooperative conflict management skills as self-expression and demonstrating understanding of opposing views. Originality/value This study directly documents that while conflicts may interfere they can also stimulate discussions and decisions that promote coordination and performance of IJVs. This study contributes to conflict management research that has largely focused on investigating the consequences of approaches by examining conditions that promote constructive conflict management approaches.

Russia will increase covert Baltic interference

2015 ◽  
Keyword(s):  
Natural Gas ◽  
Liquefied Natural Gas ◽  
Lightning Strike ◽  
Baltic States ◽  
Content Type ◽  
The Past ◽  
The Baltic ◽  
Military Exercise

Significance In line with such concerns, Estonia held a large military exercise, Hedgehog, on May 4-15, involving 13,000 troops. On May 6, Lithuania launched Lightning Strike, a military exercise involving 3,000 troops in a simulated defence of the country's new liquefied natural gas (LNG) terminal at Klaipeda. In December, Latvia said Russian submarines had approached its maritime borders more than 50 times in the past year. However, Russia's more overt activities also pose a major risk to the Baltics. Impacts Russian intelligence will continue to target not just Baltic secrets but, through them, NATO and EU ones. Russian operations will aim to create division by playing on discontent within sizeable ethnic Russian minorities who feel marginalised. NATO will increase the rate and size of Baltic drills to reassure the Baltic states.

NATO Baltic exercises will prompt risky behaviour

2016 ◽  
Keyword(s):  
Baltic Sea ◽  
Baltic States ◽  
Medium Term ◽  
The Baltic Sea ◽  
Risky Behaviour ◽  
Content Type ◽  
Us Military ◽  
Military Presence ◽  
Security Challenges ◽  
The Baltic

Significance BALTOPS 16 will be the largest NATO maritime exercise in the Baltic Sea in recent years. The exercise is also held mere weeks before NATO's July 8-9 summit in Warsaw, and therefore serves as a tangible prelude to the alliance's intent to address renewed Russian security challenges in the region. Impacts Improvements in Western missile defence systems will make it more difficult politically to undergo arms control cooperation with Moscow. Poland's military modernisation programme will boost its ability to be a security partner of the Baltic states. Washington is unlikely to approve a permanent US military presence in the Baltic states in the near-to-medium term.

Russia meddling Ukraine-style in Baltics is unlikely

2017 ◽  
Keyword(s):  
First Language ◽  
Baltic States ◽  
National Politics ◽  
Content Type ◽  
The Baltic ◽  
The Eu ◽  
Linguistic Communities

Subject Survey evidence on Baltic Russophones’ attitudes to the EU and NATO. Significance Russia’s involvement in Ukraine and the 2016 US elections have raised concerns that it may attempt to sow divisions in the Baltic states between those who speak Russian as their first language and other linguistic communities, to shift the former to a more pro-Moscow position. Impacts Significant Russian-speaking minorities will shape how the Baltic states are perceived abroad, including by Russia itself. NATO units being rotated through the Baltics would be well advised to treat Russophones correctly, to help alleviate suspicions. The Centre Party’s participation in government in Estonia brings Russophones into national politics.

Russia's Baltic Sea build-up will challenge NATO

2016 ◽  
Keyword(s):  
Baltic Sea ◽  
Long Range ◽  
Direct Contact ◽  
Baltic Region ◽  
Baltic States ◽  
The Baltic Sea ◽  
Electronic Warfare ◽  
Content Type ◽  
Close Encounters ◽  
The Baltic

Significance The Baltic Sea and its airspace brings NATO and Russian forces into direct contact, and frictions have increased since 2014, with a series of dangerously close encounters between aircraft and vessels. NATO wishes to reassure member states and bolster defence and deterrence in the Baltic region. Russia argues that it is being encircled and is developing a network of anti-access/area-denial (A2/AD) weapons systems to deter NATO maritime and air forces during a crisis or war. Impacts Aggressive Russian tactics will not stop NATO naval and air forces operating in international waters and in the Baltic states. NATO exercises are likely to intensify, with a special emphasis on long-range strike, anti-submarine and electronic warfare. Amphibious landings to reinforce the Lithuanian, Latvian and Estonian armies will be tested. NATO members and partners will consider acquiring submarines, sea-based air defence systems and anti-submarine capabilities.

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