The dynamic nature of international business opportunities is rapidly growing. This growth made it challenging to ‘go alone’ into the international business opportunities. Due to this increasing complexity, risk, magnitude and uncertainty involved in major international projects, companies are attracted to cooperatively bid for, and to perform international projects. For this goal, organisations with diverse strengths and weaknesses cooperate in these projects by forming joint ventures (JV). Joint venture can be introduced as a contractual arrangement by which two or more partners (individual or business party) agree to collaborate in an economic activity, and share control, risks and profits under pre-agreed specifi- cations. Joint venture is a unique approach to form partnerships among companies and organisations, for a finite time, without having to merge.
Beyond these advantages of the JVs, in business environments (e.g. global crude oil business) where fast approach to up-to-dated knowledge, advanced technology and new markets is more critical than ever before, joint ventures have formed as a popular collaboration (Kumaraswamy, Palaneeswaran, and Humphreys 2000). JVs have also long been popular for large capital projects to attract the investments.
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Joint ventures are not only used in manufactur- ing international projects, but also in R&D projects, in construction projects and also in the crude oil industry’s projects.