International Business: The New Realities, 5th Edition

International Collaborative Ventures

1. 14.5 Understand international collaborative ventures.

Collaborative ventures, sometimes called international partnerships or international strategic alliances, are essentially partnerships between two or more firms.35 They help companies overcome together the often substantial risks and costs involved in achieving international projects that might exceed the capabilities of any one firm operating alone. Groups of firms sometimes form partnerships to accomplish large-scale projects such as developing new technologies or completing major undertakings such as power plants. By collaborating, the focal firm can draw on a range of complementary technologies, accessible only from other companies, to innovate ...