Determinants of Transnational Joint Venture in Elevator Industry in Indonesia: Case Study of Otis, Schindler, and KONE

• Main Authors: MUHAMMAD ROFIQ, 羅菲克
• Other Authors: LIU, WENG-KUN
• Format: Others
• Language: en_US
• Published: 2018
• Online Access: http://ndltd.ncl.edu.tw/handle/4hpbjb

碩士 === 逢甲大學 === 國際經營與貿易學系 === 106 === For some companies, entering a new foreign market is a very risking thing to do, especially for a small or medium company. For bigger company with bigger capital and capabilities, investment to a new foreign market is, although also risky, most of the time will become a very rewarding investment. But for smaller company, the risk is sometimes too great or that company’s knowledge of the destination country is still limited because of limited capital to do an in-depth research. Through a joint venture, it will be easier and safer for a smaller company and even bigger company with better capital and knowledge to enter a new foreign market. By performing a joint venture with a local company at the destined market, the foreign company could absorb the knowledge and experience to survive in the new market with having to spend a lot of capital and funds to do an in-depth research. The main objective of this paper is to investigate what factors affect the success of a joint venture between a foreign company and a local company. The author has designed a five dimension that will affect the success of a joint venture. The main question that need to be answered is: Which of those 5 dimensions is the determinants of the success of a joint venture between a foreign company and a local company. This study could provide some policy implication for Taiwanese elevator company to establish a joint venture in Indonesia. We adopt Fuzzy Delphi Method (FDM), Decision Making Trial and Evaluation Laboratory (DEMATEL), DEMATEL Analytic Network Process (DANP) and VIšekriterijumsko KOmpromisno Rangiranje (VIKOR). 20 factors are divided into 5 different dimensions, Win-win, Synergy, Consistency, Interaction and Complementary. Of those 5 dimensions, the synergy dimension will influence the other 4 dimensions. Meanwhile, the third dimensions, Interaction, is influenced by all four dimensions therefore to increase the Interaction, the company need to increase the other aspect. Lastly, after comparing the performance of each company, the author concluded that the Otis elevator has the best performance compared to the Schindler and Kone. This result is supported by the gap value of Otis which have the lowest value. Keywords: Joint Venture, Indonesia, Elevator Industry, Otis, Schindler, KONE