Significant differences in the pre- and post-incorporation stages of equity international joint ventures (IJVs) and international acquisitions (IAs), and their impacts on effectiveness

This paper examines activities performed by parent companies of IJVs and acquiring companies of IAs associated with the pre-incorporation and post-incorporation phases of both IJVs and IAs. The examination is based on the assumption that because these two organizational forms have different structures, as evidenced by the generic differences between them, appropriate activities for managing the pre- and post-incorporation phases of these FDI types will differ. As a result of this examination, the paper suggests that critical components of each stage for IJVs differ significantly from those of IAs, and that effectiveness of both IJVs and IAs is consequently related to differentiating successfully between the pre- and post-incorporation stages of these two business forms.