Title: Joint venture as a risk management tool: experience from construction sector

Authors: Mangirdas Morkunas; Artiom Volkov; Elze Rudiene; Viktorija Skvarciany

Addresses: Mykolas Romeris University, Faculty of Economics and Business, Ateities str. 20, Vilnius, Lithuania ' Lithuanian Institute of Agrarian Economics, V. Kudirkos str. 18-2, Vilnius, Lithuania ' Mykolas Romeris University, Faculty of Economics and Business, Ateities str. 20, Vilnius, Lithuania ' Vilnius Gediminas Technical University, Faculty of Business Management, Sauletekio Ave. 11, Vilnius, Lithuania

Abstract: This study aims at examining the possibility of using a joint venture as a risk management tool for companies engaged in the construction business. Based on completely different risk map of a stand-alone and joint venture companies and using the analytical hierarchy process model method for evaluating the importance of particular risk factors for both cases we found, that depending on a company's ability to deal with different types of business risks, joint venture can be used as a risk management tool in particular situations. The results deviation from classical risk management literature has been found, that can be attributed to new theory applicable to small open economies in Central and Eastern Europe.

Keywords: business risk; joint venture; construction; analytical hierarchy process.

DOI: 10.1504/IJEPEE.2019.102779

International Journal of Economic Policy in Emerging Economies, 2019 Vol.12 No.3, pp.285 - 298

Received: 28 Dec 2018
Accepted: 13 Mar 2019

Published online: 03 Oct 2019 *

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