Effect of host country and project conditions in international construction joint ventures

Joint ventures (JVs) have become popular because of their importance as a strategic alternative in global competition. International joint ventures (IJVs) are difficult to manage due to their complex structures involving more than two entities having different and competing objectives and strategies. Since each construction project is unique, project-specific factors are significant for the success of an IJV as well as the risks associated with the host country in which the IJV operates. In this study, the impact of host country conditions and project characteristics on IJV performance is investigated through a questionnaire survey. IJV performance is defined as a three-dimensional construct considering the performance of the project, the IJV partners, and the IJV organization itself. The results of the study suggest that project-related factors have a great impact on IJV performance. But they failed to provide evidence that IJV performance is affected by host country related risks.