TRIAD POWER FOR TIMBER INDUSTRY : THE ROLE OF JOINT VENTURE

Abstract

Over the years, business practices and modes of foreign investments are rapidly evolving. For a myriad of reasons, firms are resorting to industrial collaboration. This study examines how joint venture, a form of industrial collaboration demanding a high degree of co-operation, can help augment the long-term position of a mature industry. The industry in question is the timber industry. After decades of growth, it is now beset with numerous problems. National economic policies are now unfavourable for this industry. Traditional sources of timber supply are upgrading their own industries. Instead of being complementary, they are becoming direct competitors. As a result, growth has stagnated. This study adopts a qualitative research approach. It draws lessons from joint venture experiences to date and attempts to understand barriers, incentives and attitudes towards joint venture Data for analysis are collected from semi-structured field interviews with four joint: venture experienced firms and industry leaders. These data are written into narratives. The framework for analysis is developed from studies by Lyles (1987), Harrigan (1987) and Tung (1984). The recommendations would be of particular interest to those operating within the timber industry. It would also be of interest to traditional and mature industries and to those interested in joint venture.