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Transnational marketing joint ventures: a viable market penetration strategy in the EU?

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  • Millington, Andrew
  • Bayliss, Brian

Abstract

This article investigates the performance of EU-based transnational marketing joint ventures (MJVs) through a set of case studies. The results emphasise the instability inherent in MJVs, and in most cases instability reflected poor performance rather than the evolution of a successful venture in the foreign market. Companies were found to undertake MJVs in order to protect and control existing market positions in the foreign country rather than gain access. Little attempt was made to transfer knowledge and expertise between the partners. Under these conditions instability resulted in the failure of the parent company to achieve its primary objective: the protection of marketing assets in the foreign market. Exporters should consider mechanisms through which local expertise can be transferred within the MJV.

Suggested Citation

  • Millington, Andrew & Bayliss, Brian, 1999. "Transnational marketing joint ventures: a viable market penetration strategy in the EU?," European Management Journal, Elsevier, vol. 17(6), pages 635-644, December.
  • Handle: RePEc:eee:eurman:v:17:y:1999:i:6:p:635-644
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