Joint forms of entrepreneurial activity. Joint entrepreneurial activity in the form of a simple partnership

In joint entrepreneurial activities, the commodity producer organizes a business in foreign markets with the involvement of local partners or partners from third countries. At the same time, the parent company is not the full owner of the joint structures being created. Forms of joint enterprise activities: contract manufacturing; international licensing; international franchising; joint venture; strategic alliance; contract management.

Contract manufacturing- a foreign company, in accordance with the concluded agreement (contract), transfers to a certain enterprise the production of certain products, which the company itself sells in markets that are attractive to it. International licensing - involves the transfer by a company (licensor) of the right to own something to a foreign enterprise (licensee), which represents some value for the latter, for which he agrees to perform certain work or make an agreed payment. This right is expressed in the receipt of a license by its applicant.

International franchising The right to act on behalf of a large company (franchisee) is obtained by a small company or private entrepreneur (franchisor) in a foreign market as a result of concluding a contract between them. In accordance with such a contract, the franchisee generally transfers to the franchisor the right to use its name, trademark, technology, and business management system.

Direct investment involves the creation of its own subsidiaries controlled by the company. The structure through which the company carries out its business activities in a separate foreign market is 100% owned by it. Among the own structures created by the company to enter certain foreign markets as part of direct investment, preference is usually given to:

Trade missions;

Foreign trade branches - a structural division of a company in a specific foreign market

Foreign trading companies - own commercial enterprise operating under the general management of the parent company and in accordance with local legislation

For foreign enterprises - located in one of the countries in which the company has its subsidiaries and sells goods of a certain assortment group.

Regional centers;

Transnational corporations.

The choice of method of entering a foreign market affects the efficiency of the company’s further functioning. Factors:

Internal factors: the size of the company and its experience in foreign markets. Smaller firms are better off pursuing export opportunities because they do not have the resources to exercise greater control over operations. Availability of international experience. Product characteristics.

External factors: social and cultural differences in individual countries, the presence of business risks in them, the market capacity of each country and its growth rate, the presence of trade barriers, as well as the level of competition and the availability of distribution channels.

Factors characterizing the degree of attractiveness of this method of entering the foreign market: level of risk, ability to exercise control and flexibility. If the firm does not want to take much risk, it will choose methods of direct or indirect export or licensing, since they require less financial participation or management resources

Factors characterizing transactions in foreign markets.

Joint ventures make it possible to share the risk, financial obligations and costs of establishing local distribution networks and hiring local staff. At the same time, significant efforts are required to negotiate and manage joint ventures. However, the method that requires the least resources and effort and is associated with the least risk promises the least benefits and risks lost opportunities.

When choosing a foreign market approach, it is important to consider the degree of control that the company's management will exercise over its international market operations. The level of control is also closely related to the level of resource participation.

Indirect exports provide the least amount of control over the terms of foreign sales. Maximum control can only be ensured in one's own subsidiaries with direct investments.

This strategy for a company’s entry into a foreign market is based on combining its efforts with commercial enterprises in a partner country in order to create production and marketing capabilities. In contrast to exports, in joint ventures (JBAs) a partnership is formed, as a result of which certain capacities are created abroad.

International marketing uses four types of SOPs:

• a) licensing;
• b) contract manufacturing;
• c) contract management;
• d) jointly owned enterprises.

Licensing is one of the easiest ways to enter a foreign market. “The licensor enters into an agreement with a licensee in a foreign market, offering the rights to use a manufacturing process, trademark, patent, trade secret, or some other value of value in exchange for a royalty or license payment. The licensor gets access to the market with minimal risk, and the licensee does not have to start from scratch, because he immediately gains manufacturing experience, a well-known product or name.”

As examples of successful licensing operations, F. Kotler cites the activities of the Gerber company, which in this way introduced its baby food products to the Japanese market. Another example is the international marketing activities carried out by the Coca-Cola company, which provides licenses to various enterprises in different parts of the world, or rather, provides them with trading privileges, since the concentrate necessary for the production of the drink is provided by the company itself.

However, licensing also has potential disadvantages in that when licensing a firm has less control over the licensee than over its newly created enterprise. Moreover, in the event of a major success of the licensee, the profits will go to him and not to the licensor. As a result, by entering the foreign market in this way, the company can create its own competitor.

The second type of SPD strategy is contract manufacturing, i.e. concluding a contract with local manufacturers for the production of goods. Sears, in particular, used this method when opening its department stores in Mexico and Spain, finding qualified manufacturers there who could produce many of the goods it sold.

This method of entering the foreign market also has disadvantages. By using it, the company has less control over the production process, which is fraught with the loss of potential profits associated with this production. However, contract manufacturing gives a company the opportunity to expand its activities in foreign markets faster, with less risk and with the prospect of entering into a partnership with a local manufacturer or purchasing its enterprise.

Another way to enter the foreign market, related to the SPD strategy, is contract management. With this method, the company provides the foreign partner with “know-how” in the field of management, and he provides the necessary capital. In other words, the company does not export goods, but rather management services. This method was used by the Hilton company when organizing the work of hotels in different parts of the world.

This method of entering the foreign market is characterized by minimal risk and income generation from the very beginning of activity. Its disadvantage is that in order to enter the foreign market, a company needs to have a sufficient staff of qualified managers who can be used to greater benefit. It is also inappropriate to resort to this method in the case where independent implementation of the entire enterprise will bring much greater profits to the company entering the foreign market. In addition, contract management for some time deprives the company of the opportunity to develop its own enterprise. Finally, another way to penetrate a foreign market is to create a joint ownership enterprise. Such an enterprise is a combination of foreign and local capital investors to create a local business enterprise that they jointly own and operate. There are different ways to start such an enterprise, for example, a foreign investor can buy a share in a local enterprise, or a local firm can buy a share in an existing local enterprise of a foreign company, or both parties can jointly create an entirely new enterprise. A joint ownership venture may be necessary or desirable for economic or political reasons. In particular, when entering a foreign market, a firm may not have sufficient financial, physical or managerial resources to undertake the project alone. Another possible reason for preferring a jointly owned enterprise is that this is the only way a foreign government allows goods of foreign production to enter the market of its country. The described method, like others, is not without drawbacks. Partners from different countries may disagree on issues related to investment, marketing and other operating principles. For example, many American firms, when exporting capital to certain countries, seek to use the earnings to reinvest in expanding production, and local firms in these countries often prefer to withdraw these proceeds from circulation. American firms play a large role in marketing, while local investors often rely solely on sales organization. In addition, the creation of jointly owned enterprises may make it difficult for a multinational company to implement specific production and marketing policies on a global scale.

(joint venturing)

Joint entrepreneurial activity is an association with foreign companies for the purpose of producing or marketing certain goods and services. A joint venture differs from exporting in that a company teams up with a partner to sell a product abroad. It differs from direct investment in that the association is created in another country. There are the following types of joint entrepreneurial activities:

· Licensing(licensing) is a simple way for a manufacturer to enter the international market.

The company enters into an agreement with licensee on the foreign market. For example, Coca-Cola operates internationally by selling licenses to foreign soft drink manufacturers and supplying them with the syrup needed to produce the finished product.

The subject of international licensing agreements are usually:

· patents for inventions;

· copyright for books, films, television products, computer programs;

· trademarks, i.e. words and symbols identifying specific goods and services;

· know-how, including production processes, quality management procedures, etc.

Thus, the company gains access to the market with minimal risk, and the licensee receives a ready-made production technology, a well-known product or name.

In addition, the license agreement may provide commercial information, technical and marketing training, the right to use the licensor’s research units, supply of necessary equipment, etc. Payment terms under license agreements may vary. For example, if the country in which the licensee is located is characterized by high political risk, then prepayment is usually used. If the political environment is stable, the payment may be in the form of a royalty, calculated as a certain percentage of the licensee's sales volume.

Unlike export, a licensing agreement involves control over the production and distribution of products by the licensee. The licensor avoids investing in creating a production and distribution system and has the opportunity to penetrate markets where export operations are difficult or impossible.

Licensing Disadvantages: the firm has less control over the licensee than over its own means of production; if the licensee is unsuccessful, the firm loses the corresponding profits, and when the contract ends, the firm may find itself creating a competitor with its own hands.

· Franchising(franchising) - a special type of licensing agreement in which the franchisee operates using the name of the franchisor.

The franchisor provides not only a trademark and know-how, but also provides financial support, assistance in management, and carries out joint advertising activities. The franchisee's enterprise is considered by the public as one of the divisions of a single large company. Payment under a franchise agreement may include an initial fee and royalties.

Franchise agreements are most common in the service industry. It is believed that the country in which the franchisees are located receives significant benefits, since within the framework of these agreements the franchisor, among other things, transfers skills and operating techniques. The franchisor, in turn, gains access to the market and retains significant control over the established enterprise at a minimum cost.

· Contract manufacturing(contract manufacturing) - a joint venture in which a company enters into a contract for the production of products with manufacturers in a foreign market. Many Western firms have used this model to enter the markets of Taiwan and South Korea.

Flaws: Reduced control over the production process and loss of potential income from production.

Advantages: the possibility of a quick start with less risk, as well as the opportunity to subsequently organize a partnership with a local manufacturer.

· Turnkey contracts(turnkey contracts)

The company that has entered into such an agreement undertakes to create a production facility or infrastructure facility ready for operation, i.e. develop the design of the facility, provide the necessary technology, purchase equipment, build premises, install and prepare equipment for operation. Payment under the agreement can be made with the products of the created enterprise.

Many developing countries are using turnkey projects to set up oil processing plants. In Indonesia in the 1980s. By the efforts of such companies as British Petroleum, Foster Wheeler (USA), Mitsui and Mitsubishi, eight plants for the production of petroleum products were built.

· Contract management(management contracting) - a joint venture in which a local company provides management know-how to a foreign company; the foreign company, in turn, provides capital. Thus, the local company does not export products, but management services.

A company that assumes the responsibility to manage the activities of an enterprise that is the subject of a management contract may perform the following functions: general management, financial management, personnel management, production or marketing. The company's powers are limited to the day-to-day operations of the enterprise and do not extend to investment decisions and strategy determination.

Management contracts are usually complemented by other forms of international activity: licensing agreements, joint ventures or turnkey contracts. The disadvantage of this form is that it does not allow creating a long-term presence in the foreign market. Management contracts are most common in industries such as hospitality, transportation, agriculture, and mining. For example, Hilton uses a similar agreement to manage hotels around the world.

Advantages: low risk, opportunity to generate income from the very beginning.

Flaws: Does not allow the company to establish its own management.

· Contract manufacturing(contract manufacturing)

According to an agreement on the production of products, one company (principal) gives an order for the production of products to another company (agent), while stipulating the characteristics of the products produced. As a rule, the sale of manufactured products is carried out by the principal. Part of the agreement may also include providing the agent with know-how and the necessary equipment, which helps guarantee the quality of the work. Contract manufacturing is common in industries such as apparel and electronics.

· Joint ownership(joint ownership) - a joint venture in which a company unites with investors in a foreign market to create a local enterprise; the company is a co-owner of this enterprise and takes part in its management.

A joint venture involves the joint ownership of assets, the bearing of risks and the sharing of profits of a newly formed company by two or more parties. The distribution of ownership of an enterprise can be determined by the size of the financial contribution of participants, as well as the production and management technology provided, and access to markets for products. A joint venture as a form of international activity allows a company to obtain the following advantages:

· access to “closed” markets;

· development of technology and strengthening of market position in conditions of lack of resources;

· gaining access to distribution channels, technology, raw material suppliers;

· implementation of a global strategy in the context of shorter product life cycles, the growing importance of low costs, and an increase in the number of competitors.

The creation of a joint venture involves several stages:

1. Determining the purpose of joint activity.

2. Choosing a partner abroad.

3. Preparation of background information and evaluation of options.

4. Feasibility study.

5. Preparation of constituent documents.

There is a special type of joint venture - a contractual joint venture, in which capital is not combined to form a separate company. The parties join together in a partnership to implement a project, jointly making investments, bearing risks and managing the profits.

Flaws: Partners may have disagreements regarding investments, marketing or some other issues. In order to profit from a partnership, the parties must clarify their expectations and goals and make efforts to achieve the best results for all parties.

Direct investment

(direct investment)

Direct investment is entering a foreign market by creating assembly or manufacturing enterprises abroad.

· Own divisions(wholly owned subsidiaries)

The creation of a foreign subsidiary, which is the property of the company, is explained by the desire of its managers to gain direct control over the production process for marketing reasons or to protect technology. There are 3 types of foreign direct investment leading to the creation of its own division or joint venture.

1. Investments related to marketing. With such investments, the company seeks to replace the export of products to a certain country or part of it with the production of goods within this country.

2. Investments associated with costs. A company tries to take advantage of the low cost of labor or other resources in a particular country.

3. Investments related to access to mineral resources. Many companies receive the right to extract minerals in the territory of another state, subject to the construction of a mining enterprise.

Own divisions can be created by investing in the construction of a new plant, through acquisition or merger.

· Strategic alliances(strategic alliances)

Entering into alliances (agreements) is common for both global and smaller companies that are trying to strengthen their competitive position. Strategic alliances are created to jointly bear the risks associated with innovation, create new opportunities for development, and use each other's skills and knowledge.

Benefits:

1. the company can achieve lower production costs due to cheaper labor or raw materials, investment incentives from foreign governments, and savings on freight transportation.

2. The company can improve its image in the relevant country by creating new jobs.

3. The firm, by developing deeper relationships with local government, consumers, local suppliers and distributors, can better tailor its products to local market conditions.

4. The company retains full control over investments and, accordingly, can develop a production and marketing strategy that will serve its long-term international goals.

Flaws:

1. high level of risk associated with devaluation of the local currency, market instability, change of governments.

Taking advantage of international marketing opportunities requires companies to invest heavily. Many companies underestimate the costs of doing business abroad. Moreover, their expectations of quick returns from investments are not justified, which causes the rapid withdrawal of companies from foreign markets that have not taken a stable position in it.

Target clients of foreign markets must be confident that these investments will be long-lasting. Buyers of capital goods and high-value durable goods feel safer and more favorable to a particular brand if it has entered the market to stay in it and provides reliable service and an after-sales guarantee.

3. Channels of commodity distribution in international trade

An international company must consider the problem of marketing products to end consumers from the point of view all distribution channels. There are 3 main links between seller And the final buyer.

The first link seller's headquarters, controls the distribution channels and is part of the channel itself.

Second link interstate channels, ensures delivery of goods to the borders of foreign countries.

Third link domestic channels, ensure the delivery of goods from border crossing points of a foreign state to end consumers. It is necessary to pay more attention to its activities abroad. It is necessary to invest in obtaining information about the characteristics of each foreign market distribution channel and choosing the most effective method of penetrating a complex or fortified distribution system.

General distribution channel structure for international marketing

Deciding on market entry methods

Having decided to engage in sales in a particular country, the company must choose the best way to enter the chosen market. She can stop at export, joint venture or direct investment abroad 10 . Each successive strategic approach requires greater commitment and greater risk, but also promises greater returns. All these strategies for entering the foreign market are presented in Fig. 92 indicating options for possible actions in each specific case.

Rice. 92. Strategies for entering foreign markets

Export

The easiest way to enter into activities in a foreign market is to export. Irregular export This is a passive level of involvement where the firm occasionally exports its surplus and sells goods to local wholesalers representing foreign firms. Active export occurs when a firm sets out to expand its export operations in a specific market. In both cases, the firm produces all its goods in its own country. They can offer them for export in both modified and unmodified form. Of the three possible strategy options, exporting requires minimal changes to the firm's product mix, structure, capital expenditures, and program of operations.

A firm can export its goods in two ways. You can use the services of independent international marketing intermediaries (indirect export) or carry out export operations yourself (direct export). The practice of indirect export is most common among firms just starting their export activities. Firstly, it requires less capital investment. The company does not have to acquire its own sales apparatus abroad or establish a network of contacts. Secondly, it is associated with less risk. International marketing intermediaries are domestic merchant-exporters, domestic export agents or cooperative organizations who bring their specific professional knowledge, skills and services to this activity, and therefore the seller, as a rule, makes fewer mistakes.

Joint business activity

Another general direction for entering a foreign market is to join forces with commercial enterprises in a partner country in order to create production and marketing capabilities. Joint business activities differ from exports in that a partnership is formed, as a result of which certain production facilities are created abroad. What distinguishes it from direct investment is that an association with a local organization is formed in the partner country. There are four types of joint ventures.

LICENSING. This is one of the easiest ways to involve a manufacturer in international marketing. The licensor enters into an agreement with a licensee in a foreign market, offering the rights to use a manufacturing process, trademark, patent, trade secret, or some other value of value in exchange for a royalty or license payment. The licensor gets access to the market with minimal risk, and the licensee does not have to start from scratch, because he immediately receives production experience, a well-known product or name. Through licensing operations, Gerber introduced its baby food products to the Japanese market. The Coca-Cola Company carries out its international marketing activities by granting licenses to various enterprises in different parts of the world or, more precisely, by providing them with trading privileges, since the company itself provides the concentrate necessary for the production of the drink.

A potential disadvantage of licensing is that the firm has less control over the licensee than over its newly created enterprise. In addition, if the licensee is very successful, the profits will go to him, and at the end of the contract the firm may find that it has created a competitor.

CONTRACT MANUFACTURING. Another activity option is concluding a contract with local manufacturers for the production of goods. Sears used this method to open its department stores in Mexico and Spain, finding skilled local manufacturers who could make many of the products it sold.

The disadvantage of contract manufacturing is the company's less control over the production process and the loss of potential profits associated with this production. At the same time, it gives the firm the opportunity to expand faster, with less risk, and with the prospect of partnering with or purchasing a local manufacturer.

CONTRACT MANAGEMENT. In this case, the company provides the foreign partner with “know-how” in the field of management, and he provides the necessary capital. Thus, the firm does not export a product, but rather management services. This method is used by Hilton to organize the operation of hotels in different parts of the world.

Contract management ¾ is a way to enter a foreign market with minimal risk and generate income from the very beginning of activity. However, it is not advisable to resort to it if the company has a limited staff of qualified managers who can be used with greater benefit for itself, or in the case where independent implementation of the entire enterprise will bring much greater profits. In addition, contract management for some time deprives the company of the opportunity to develop its own enterprise.

JOINT OWNERSHIP ENTERPRISES. A joint ownership venture is a combination of foreign and local investors to create a local business enterprise that they jointly own and operate. An overseas investor can buy a stake in a local business, a local firm can buy a stake in an existing local business of a foreign company, or both parties can work together to create an entirely new business.

A joint ownership venture may be necessary or desirable for economic or political reasons. The firm may lack the financial, physical, or managerial resources to undertake the project alone. Or perhaps co-ownership is a condition of foreign government entry into their country's market.

The practice of joint ownership has certain disadvantages. Partners may disagree on investment, marketing, and other operating principles. While many American firms seek to use earnings to reinvest in business expansion, local firms often choose to withdraw these proceeds. While American firms play a larger role in marketing, local investors can often rely solely on sales organization. Moreover, cross-ownership may make it difficult for a multinational company to implement specific policies in production and marketing on a global scale.

Direct investment

The most complete form of involvement in activities in the foreign market is the investment of capital in the creation of their own assembly or production enterprises abroad. As the firm gains experience in exporting and the foreign market is large enough, manufacturing facilities abroad offer clear benefits. First, the firm can save money through cheaper labor or cheaper raw materials, through incentives given by foreign governments to foreign investors, through downsizing; transport costs, etc. Secondly, by creating jobs, the company provides itself with a more favorable image in the partner country. Third, the firm develops deeper relationships with governments, customers, suppliers, and distributors in the host country, allowing it to better tailor its products to the local marketing environment. Fourth, the firm retains complete control over its investments and can therefore develop production and marketing policies that suit its long-term international objectives.

In the practice of modern international business, various, including quite flexible, forms of international cooperation have been developed, which include:

· co-production - production of a complex product or its components by one of the foreign partners;

· contract management - transfer of know-how in the field of management by one of the partners to another;

· franchising - issuing a license for a certain activity with the provision of additional management, marketing and technological support;

· strategic alliance - a formal or informal alliance created with the aim of pooling resources to solve problems of reorganization, increasing market efficiency, etc., or achieving “economies of scale”, or for other purposes;

· a joint venture is one of the most common forms of strategic alliance, associated with the creation of a new company as legally and economically independent enterprises;

· multinational company - the most “tough” form of international cooperation, based on the mechanism of shareholder participation and/or other methods of corporate control.

A joint venture is an international firm created by two or more national enterprises with the aim of making fullest use of the potential of each party to maximize the beneficial economic effect of their activities. It is a type of enterprise with foreign investment and, in accordance with current Russian legislation, is defined as an enterprise with equity participation of Russian and foreign investors. An important feature of a joint venture should be considered the presence of at least one foreign investor among its founders (participants), along with the national one.

The concept of an international joint venture is used to refer to enterprises (firms) jointly owned by two or more owners (legal entities and individuals), based on mixed ownership of different countries.

Important motivations for creating joint ventures are the difficulties of independent penetration into foreign markets, insufficient knowledge of the foreign economic environment and the need to combine the efforts of partners in conditions of growing uncertainty of economic development, and sometimes national legislation limiting 100% foreign ownership in certain industries and areas. Of particular importance in this regard is the exchange of organizational, managerial and technological experience, and the mutual use of the partners’ sales and service infrastructure.

The goals of a joint venture may be different. The main and most common ones include:

1. obtaining modern foreign technologies (in contrast to traditional licensing in joint ventures, the seller of licenses becomes a co-owner of the enterprise using them, extremely interested in receiving high profits), overcoming the barriers of protectionism in international technology transfer;

2. increasing the competitiveness of the product on the market; expanding product exports, entering the foreign market through:

Studying the specific needs of foreign markets, carrying out a set of marketing activities;

Organizing the production of products in accordance with the quality parameters characteristic of the world market or in accordance with the standards adopted in the countries where it is planned to sell them;

Entering the markets of countries that apply strict trade protectionism and restrictions on foreign investment without the participation of local enterprises and firms.

3. attracting additional financial and material resources, the possibility of using the resources available to one of the founders of the joint venture at prices significantly lower than average prices on the world market;

4. reduction in production costs based on the use of transfer (intra-company) pricing, saving costs on product sales;

5. improvement of material and technical support by obtaining from a foreign partner scarce material resources, semi-finished products that they do not produce, components and parts (“screwdriver” production).

The emergence and spread of joint ventures as one of the forms of coordinated activities of two or more partners aimed at achieving a common goal was facilitated by the processes of internationalization of the economies of different countries and an increase in the export of capital. Integration trends in the field of specialization and cooperation of production have a certain influence on the development of joint ventures. Joint ventures as one of the promising organizational forms of business became widespread in the 1970-80s in the countries of Western Europe and Asia, and then in the countries of Central and Eastern Europe, as well as the CIS.

Joint ventures have become a means of attracting advanced foreign technology and modern management experience. Thanks to them, the export of capital is facilitated, including in its productive form, and investment projects are implemented, the implementation of which is beyond the power of one company. In addition, markets in new regions are easier to develop with the help of local partners, especially since enterprises with equity participation of foreign and national investors often enjoy tax breaks. Being international in form, joint ventures have acquired a special status in the country of official legal registration. In all countries, the activities of joint ventures are regulated by special legislation, including tax, economic, etc.

The huge capacity of the Russian market, diverse natural resources, and skilled labor are attractive factors for foreign investment in the Russian economy. In accordance with current Russian legislation, joint ventures can be created in the form of business partnerships and companies.

According to their organizational structure, joint ventures can be divided into closed or open joint-stock companies, limited liability companies, etc., while the share of each party in the authorized capital of the joint venture is strictly specified in the constituent documents. Profit distribution occurs, as a rule, in proportion to the share of participation in the authorized capital of the company.

A distinctive feature of the joint venture management structure is the equality of parties in decision-making processes, control over the company’s activities, and strategic planning. Operational and tactical management is carried out by the highest management body of the company, appointed by the co-owners of the joint venture. Parity principles of company management allow each party to derive the greatest benefit from joint activities and contribute to the development of business cooperation.

The management structure of a joint venture fits within the framework of traditional company management schemes (functional, product, divisional, matrix, regional, etc.) and depends on the nature of the activity, the number of parties involved in the creation of the company, the degree of diversification of production and services provided.

Being a fairly flexible organizational form of management that allows the use of experience, financial and other resources of companies from different countries, joint ventures become a kind of growth point for new forms of business. Using resources from different countries allows you to minimize costs and maximize profits, thereby increasing the return on your partners' invested capital.

Creating joint ventures abroad requires solving many management problems, taking into account the characteristics of the external environment, and stimulating the workforce. Consideration must be given to the significant cultural, commercial, economic and other differences between the countries involved in the joint venture. Personnel composition of parent companies usually evaluates labor productivity, remuneration levels, labor safety differently and puts different assessments into the concept of subordination. There may also be large differences in the organizational cultures of the two parent companies and in the strategy for using human resources. Cultural differences influence the formation of a joint venture, as they are reflected in differences in approaches to goals, strategies, human resource policies, development opportunities and difficulties, organizational relationships, and communication priorities.