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Transnational Joint Ventures between UK and EU Manufacturing Companies and the Structure of Competition

This paper analyses both the incidence and motivation for transnational joint ventures between UK and EU companies in relation to the structure of competition. It is based on a survey of 812 UK manufacturing PLCs and case studies in forty-six companies with a total of sixty-nine joint ventures. The...

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Bibliographic Details
Published in:Journal of international business studies 1995-06, Vol.26 (2), p.239-254
Main Authors: Millington, Andrew I., Bayliss, Brian T.
Format: Article
Language:English
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Summary:This paper analyses both the incidence and motivation for transnational joint ventures between UK and EU companies in relation to the structure of competition. It is based on a survey of 812 UK manufacturing PLCs and case studies in forty-six companies with a total of sixty-nine joint ventures. The results highlight the importance of transnational JVs in the EU and suggest that they are unlikely to have significantly reduced the level of competition in the Union. The motivations which underlie these ventures can be broken into two groups. Large firms undertake JVs in response to competitive pressures within an increasingly unified single market. Small and medium-sized firms undertake JVs in order to penetrate discrete national markets.
ISSN:0047-2506
1478-6990
DOI:10.1057/palgrave.jibs.8490173