Success criteria for international joint ventures: The experience of Malaysian contractors in the Middle East

Abstract

The overall objective of this paper is to produce success criteria considered critical in internationaljoint ventures (IJV), specifically between Malaysian and foreign contractors outside Malaysia. Therecognition of such criteria will contribute to the identification of non-viable projects and will enableimprovements to be made to the IJV and other similar economies. Data specific to the present studywas collected through face-to-face interviews, which were carried out with the General Manager of therespective companies to provide detailed information on their company structure, management andexperience of any joint venture projects undertaken outside Malaysia. The main findings from theinterviews are that the critical factors in IJV partner selection criteria were related to the reputation,inter-partner trust, experience, personal knowledge of the partner organizations, commitment andhuman resources management. The employment of Malaysian sub-contractors also lessened thecomplexity of management. This is largely due to the familiarity of working with fellow Malaysians in theMiddle East.