Culture of Denmark and India for Joint Venture

The world is globalizing so rapidly that companies have to keep the same pace by internationalizing to get in align with it. There are various means of getting internationalized, broadly, export mode, intermediate mode and hierarchical mode (Hollensen, 2011). The basic idea of internationalizing for smaller companies is of course to start out with exporting leading it to intermediate mode or hierarchical mode. When companies are quite good or very good at international market or may be the products are quite well known in the international markets, they want to get global. The interesting part is then selection of entry mode. Additionally, the selection process varies depending on several factors; the degree of control in international market is an example of it. In this research, the central focus is on international joint venture.

Joint venture is one of the market entry strategies for those enterprises that are quite risk averse. In other words, companies intending to internationalize with less risk, may be due to lack of international experience or lack of financing, but at the same time demanding higher degree of control may prefer joint venture. When two or more companies of different countries come together to form an international joint venture several factors influences the performance of joint venture. Among those, culture is one of the important factors. When we talk about culture, there are always two types of culture that plays role in international joint venture, and they are, national culture and organizational culture.

My research topic is ‘ Culture and International Joint Venture’, in which, I have chosen two countries