Authors: A. Cemal Ekin, Thomas R. King
Addresses: Department of Marketing, Providence College, Providence, RI 02918, USA. ' Department of Marketing, Providence College, Providence, RI 02918, USA
Abstract: Joint ventures with equity participation by partners bring together parties with different capabilities to achieve a common goal. The expectation typically focuses on synergy that will benefit both parties. BP, the British oil company and the Russian conglomerate TNK formed a joint venture with similar hopes. BP offered its significant market power in the world and technological know-how; TNK brought to the table the vast oil reserves in the steppes of Siberia. In a few short years, the venture started manifesting instability primarily caused by the differences in economic motives and cultural orientations of the partners. This paper traces the chronology of events in the souring relationships between the partners as evidenced in recent times and assesses the instability of the venture.
Keywords: joint ventures; international partnerships; TNK-BP joint venture; Russian market conditions; joint venture instability; strategic alliances; Russia; economic motivation; cultural orientation; culture.
International Journal of Strategic Business Alliances, 2009 Vol.1 No.1, pp.89 - 106
Published online: 06 Mar 2009 *Full-text access for editors Access for subscribers Purchase this article Comment on this article