An explorative study of trends, distribution and pattern of bilateral cross-border joint ventures (CBJVs)

This paper aims to explore the trends, distribution and pattern of Indian bilateral cross-border joint venture (CBJV) activity with advanced developed nations (G7 nations) which include the USA, the UK, Japan, France, Germany, Italy and Canada over the 2001-2010 period.

Longitudinal data on the population of 201 CBJVs are analyzed using Securities Data Company (SDC) platinum database. Chi-square test of independence is conducted on the parameters for CBJVs collected over a span of 10 years to test interrelations between them.

The results of explorative trend analysis and test of interdependence are significantly different from developed countries in terms of interrelation between parent’s nationality, industry classification, broad purpose, period of formation and the equity owned.

Future work may explore the strategic motivation of both developed and developing nation firms, given the dynamics of CBJVs explored in this paper. The study could also be extended to other developed and developing nation firms CBJVs with Indian firms.

This study provides a broad-based objective exploratory study of trends and distribution of CBJVs from the standpoint of the developing nations. This helps managers to identify the dynamic industries of CBJVs in India as far as G7 nations are concerned.

The possibility of asymmetric motives of partners in CBJV could not be negated. The role of Indian policymakers also becomes much larger to regulate the monopolistic and anti-competitive practices.

The longitudinal study serves to present first of its kind systematic analysis of detailed activity of Indian firms in bilateral CBJV formation.