CRITICAL SUCCESS FACTORS FOR JOINT VENTURE BETWEEN LOCAL AND CHINESE FIRMS FOR PAKISTAN’S CONSTRUCTION INDUSTRY

Abstract

Joint venture is an agenda of construction companies worldwide to stay strategically flexible, enhance competitiveness and reduces risks retained by each stakeholder. Firms with diverse territorial origin share equity, resources and experience acquired by their individual businesses in JV. International JVs in Pakistan’s construction Industry have increased since inundation of Chinese firms in trail of foreign investment (majorly by International banks). However, it is yet not clear which factors influence the successful outcome of a JV between local and Chinese firms. This study intends to close that gap. Data has been collected from professionals involved in IJV in Pakistan w.r.t Chinese firms. This study provides a priority-based model using Analytical hierarchic process for local industry to adopt, for a higher probability of project success during strategic alliance with Chinese firms. Key findings of the study reveal that there are few success factors which play a critical role as compared to other trivial many for a successful JV. Priority based model has categories with CSFs in them which were prioritized using AHP through detailed field survey from experts and individuals who were involved in JV between local and Chinese firms. CSFs Priority model was further validated through field experts. Research in this case was limited to IJV between local and only Chinese firms which can be extended to firms from different country origin.