Merchant writes award-winning paper

October 06, 2005, vol. 34, no. 3

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Firms involved in, or considering, international joint ventures need to think about the context, or environment in which their firm operates, says SFU business professor Hemant Merchant. His recent paper examining international joint venture performance recently won the 2004 Douglas MacKay outstanding paper award from the Administrative Sciences Association of Canada (ASAC), the country's premiere academic management organization. ASAC editors judged it the most valuable paper published in 2004 in the Canadian Journal of Administrative Sciences.

Merchant is the first academic to consider contextual environment when rating the performance of international joint ventures. He discovered that, contrary to popular opinion, firms don't necessarily have to excel on every front in order to do well in a joint venture. “If you have a weaker firm, you can still pull off a successful joint venture by choosing your environment carefully,” he says. For instance, a strong firm can often succeed in a politically risky environment, whereas a weaker firm should seek joint ventures in more politically stable environments.

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