IRS Annika Lorenz
Tuesday, 26 April 2016, 10am - 12 noon, TIM Social Area
The fine line between success and failure: Joint venture management at Nestea and Lipton Ice Tea
Joint ventures are a popular mode of inter-firm cooperation to achieve various objectives. However, joint ventures can be a challenge to manage, which may explain their high failure rates. As these failures leave companies with high costs, researchers have devoted their attention to studying the factors leading to joint venture success/failure in the past years. Comparing two competing joint ventures in the ready-to-drink tea industry we disentangle the factors explaining their success or failure. Although both joint ventures have very similar histories and starting conditions, the joint venture between Nestlé and The Coca-Cola Company collapsed in 2012 whereas the joint venture between Unilever and PepsiCo continues to prosper. Our research examines the fine line between success and failure when it comes to managing joint ventures. Based on the results, we provide a step-by-step guideline for managers to effectively and successfully manage joint ventures.