International Joint Ventures among Developing Country Multinationals: The Case of Salinas Group-Faw

I study the determinants of the success of international joint ventures (IJVs) among developing country multinational companies. From the analysis of the case of the IJV between the Mexican conglomerate Salinas Group and the Chinese automobile producer FAW I conclude two points. First, IJVs among developing country firms reveal an implicit assumption of a tension due to helping an industry competitor and gaining market knowledge and technology. Second, IJVs among developing country firms reveal the unique challenge of having to face the perceived disadvantage of lower quality of products created by developing country firms.