BMO5572 | Management | The Stages Of International Joint Venture

e to affect the international joint ventures. The international joint ventures are thereby considered to be the most important ways by which the organizations are able to expand their operations in different countries (Deák and Peredy 2015).

Discussion based on the stages of international joint venture and HR implications

The international joint venture related plans of the organizations can also face some major obstacles in different countries. These obstacles can thereby be removed with the proper assistance of the employees of both the organizations and different departments as well. The human resource department can thereby play the most significant role in proper management of the employees and their work process at the time of an international joint venture (Debroux 2015).

The different stages that are considered in the international expansion of organizations are as follows,

Step 1 - The organization needs to have effective understanding of the international target where it is planning to expand its operations. The organization thereby needs to search for markets which are willing to purchase the products that are offered to the consumers. The search for a perfect partner in the international joint ventures is also an important part of the proper operations of the organizations. The potential partners thereby need to be analysed in an effective manner by the company in order to decide the best among them (del Mar Benavides-Espinosa and Ribeiro-Soriano 2014). The organization thereby needs to protect its interests before it is able to plan the ways by which it can operate in the international markets. The human resource department of the organizations can play a major part in the methods by which the company is able to find the suitable partners. The research based on suitability of the partners can be done by the human resource department of the companies (Gerschewski, Rose and Lindsay 2015).

Step 2 – The organization which wishes to expand its operations in a different country needs to search for a partner who has larger operations than it has in the international market. The most important part of the selection is thereby based on the ways by which the partner is able to provide effective amounts of support to the company which has planned for expansions. The large local partners will play a major role in the growth of proper operations of the company which has expanded its operations. The regulations which are thereby developed in the international areas needs to be considered by the organizations in an effective manner by the companies in order to operate in a profitable manner (Hollender, Zapkau and Schwens 2017). The human resource managers of the companies can thereby analyse the policies which are required for the proper functioning in the other countries. The partners in international joint ventures thereby can be selected effectively with the help of human resource managers. The analysis of employee data and external influences will thereby play a main part in the methods by which the companies can maintain the regulations (Khamaksorn, Kurul and Tah 2017).

Step 3 – The imbalance between the size of two organizations who are about to form the partnerships is evident in international joint ventures. The companies thereby need to understand that the imbalance is not a negative aspect of proper business operations. The changes which can take place in the external environment of the companies can be responded to in an effective manner. The human resource managers are thereby able to affect the ways by which the companies can create their response to changes which are taking placed in the environment (Martin-Rios 2014).

Step 4 – The relationship which is thereby developed among the organizations is an important part of the successful partnerships. The structure of the IJV thereby needs to be maintained in an effective way with the help of the human resource managers of the companies. The business relationships which are thereby developed in an effective way with the help of appropriate assistance which can be provided to them by the human resource managers of the company. The managers can play a main part in the methods by which the organizations are able to develop effective relationships among themselves (Minbaeva et al. 2014).

Step 5 – The development of cross cultural skills is an important factor which can affect the leadership based activities of human resource managers. The managers thereby need to formulate effective relationships among the organizations with proper management of diverse employees. The cross cultural skills will help in the development of employees of both the organizations which belong to different backgrounds (Taussig and Delios 2015).

The different stages which form an important part of the process related international joint ventures are thereby affected by the human resource related functions of both the companies. The human resources are thereby able to impact the ways by which organizations and their effective operations can be managed by the employees.

Conclusion

The essay can be concluded by stating that the proper operations of international organizations after their expansion is based on the ways by which the human resource department is able to manage the different types of employees effectively. The human resource department is thereby considered to be an important part of the operations of companies after the process of international joint ventures have been completed effectively. The human resources are thereby considered to be an important part of the operations of the global organizations and their partners.

References

Chen, X., Chen, A.X. and Zhou, K.Z., 2014. Strategic orientation, foreign parent control, and differentiation capability building of international joint ventures in an emerging market. Journal of International Marketing, 22(3), pp.30-49.

Deák, C. and Peredy, Z., 2015. Policy framework conditions to foster “system innovation” with some illustration from an international perspective. Journal of Innovation Management, 3(1), pp.14-24.

Debroux, P., 2015. International human resource management: policies and practices for multinational enterprises/International human resource management: a cross-cultural and comparative approach.

del Mar Benavides-Espinosa, M. and Ribeiro-Soriano, D., 2014. Cooperative learning in creating and managing joint ventures. Journal of Business Research, 67(4), pp.648-655.

Gerschewski, S., Rose, E.L. and Lindsay, V.J., 2015. Understanding the drivers of international performance for born global firms: An integrated perspective. Journal of World Business, 50(3), pp.558-575.

Hollender, L., Zapkau, F.B. and Schwens, C., 2017. SME foreign market entry mode choice and foreign venture performance: The moderating effect of international experience and product adaptation. International Business Review, 26(2), pp.250-263.

Khamaksorn, A., Kurul, E. and Tah, J.H.M., 2017, December. Factors Affecting Knowledge Transfer in International Construction Joint Venture Projects. In International Conference on Civil, Architecture and Sustainable Development (pp. 1-2).

Martin-Rios, C., 2014. Why do firms seek to share human resource management knowledge? The importance of inter-firm networks. Journal of Business Research, 67(2), pp.190-199.

Minbaeva, D., Pedersen, T., Björkman, I., Fey, C.F. and Park, H.J., 2014. MNC knowledge transfer, subsidiary absorptive capacity and HRM. Journal of International Business Studies, 45(1), pp.38-51.

Taussig, M. and Delios, A., 2015. Unbundling the effects of institutions on firm resources: The contingent value of being local in emerging economy private equity. Strategic Management Journal, 36(12), pp.1845-1865.