Joint Ventures and Management Cybernetics

: a Viable System Approach for Further Sense-making of Joint Venture Stability

Abstract

Despite extensive research over decades, unintended terminations of joint ventures (JVs) due to insufficient stability remain an unresolved significant challenge for companies. This abductive, qualitative study, grounded in critical realism, aimed to obtain deeper insights into the phenomenon of JV stability by adopting a systemic perspective, a view neglected in current research. Conceptually, this study was framed within a newly developed systemic conceptualization of JV stability addressing deficiencies of the 'static, outcome-oriented' and 'dynamic, process- oriented' conceptualizations prevalent in the scholarly discourse. By focusing on JV networks – comprising the JV itself and its parent companies – embedded within their environments, this new conceptualization led to a broader and more balanced perspective for investigating JV stability. The systemic conceptualization, combined with the potential of systems theory to contribute as a holistic, dynamic, and integrative framework for a more comprehensive understanding of JV stability, addressing criticisms related to some of the main theoretical approaches used in current literature, formed the rationale for applying a systemic perspective. The research questions explored the stability-critical elements within a JV network and its surrounding environment, as well as the associated stability-critical interrelations, and addressed how these insights can be leveraged by practitioners to secure and enhance the stability of JVs. To systemically examine JV stability, the study employed management cybernetics as systems approach and the accompanying Viable System Model (VSM). The basis for the data analysis consisted of 27 JV cases, collectively shared by senior-level advisors with first-hand experience in both well-performing and unintentionally terminated JVs. These JV cases were collected through 15 semi-structured interviews. Through template analysis, six stability- critical elements and six stability-critical interrelations were revealed. These findings not only underscore the value of applying a systemic perspective but also deepen the understanding of JV stability. Building on this, the thesis presents a VSM-based understanding and actionable insights which can equip managers of JVs and their parent companies with enhanced JV stability management capabilities for the establishment of new JVs and the reshaping of existing ones.

Date of Award	20 Dec 2024
Original language	English
Awarding Institution	University of Portsmouth
Supervisor	Alan Tait (Supervisor), Robert Lobue (Supervisor) & Gioia Pescetto (Supervisor)