Success predictor for international joint ventures in Vietnam

Purpose - The purpose of this paper is to determine a success predictor for Vietnam‐based international joint ventures (IJVs). Design/methodology/approach - Using the multiple case study method, seven successful IJVs in Ho Chi Minh City – Vietnam's largest and most economically dynamic metropolitan area – were examined by reviewing their business records and by personal interviews with senior management and staff. Two specific types of data collection procedures were applied: methodological triangulation (using multiple methods of data capture: in‐depth interviews, non‐participation observation during visits, and analysis both of companies' internal and external documents) and data triangulation (using a variety of data sources: spreading out during a 30‐month period and involved 75 in‐depth face to face interviews). Findings - Successful IJVs in Vietnam usually use four popular control mechanisms. Action‐control, result‐control, and personnel‐control mechanisms co‐exist in a closely‐knit environment yet still influence each other in a process assisted by relationship control mechanism. As a condition for success, an IJV should have at least one control mechanism at a high level of importance with no control mechanisms positioned at a low level of importance. Originality/value - Those who are building successful IJVs in Vietnam should first determine proper control mechanisms necessary for IJV success. It also proves useful and helpful if investors and local government use these results to jointly develop successful IJVs for the benefit of Vietnam's economy and society.