ABSTRACT
The main thrust behind opting for the JV entry mode in ASEAN is in order to complement the “know-how” of the incoming foreign multinational with the “know who” of the local partners. In spite of their undoubted global power – in terms of capital, technology, branding and management technique – once “on the ground” in Asia, all business ventures depend on the collaboration and cooperation of local experts with their knowledge of the market. The prevalence of international joint ventures in the region reflects this need for local relationships to be cultivated, particularly when seeking to secure adequate distribution channels for incoming product. Foreign companies, typified by Siemens, which has stressed this point, are then also able to benefit from a learning curve which will assist them in the acquisition of host country-specific knowledge, for example the marketing skills and tactics appropriate to the local culture.
