Ownership and management together in a strategy that runs on each of the parent company can not simply be applied to the joint venture. Strategy of joint ventures should be arranged in such a way by considering all its aspects so as to fulfill its intended purpose. In formulating this strategy, there is a crucial factor to consider because it will determine the success. First the good personal relations between partners, mutual understanding and acceptance. Personal relationships – recognized or not – it is crucial continuity of this cooperation. When the ‘trust’ among the partners was cracked, so stay “counting the days’ continuance. Communication channels so that the next deciding factor in the sustainability of this venture. Openness of communication channels and procedures agreed reporting time becomes very important. Of course the reason for a reasonable determination.
The most fundamental problem forming the joint venture is a sense of trust and reciprocity between partners. Trust can be formed if there is an agreement on the behaviors expected of each member firm partners, who poured in organizational culture.
In terms of organizational structure, a joint venture operated by a team appointed by the collective agreement by each partner incorporated in it. Often the board of directors or key positions occupied by the other that in fact an employee or a part of each parent company. In fact, each parent company has its own interests. Thus, to avoid conflicts of interest, the relationship between joint venture with each parent should be made firmly and accurately as possible. In addition, the principles of transparency and accountability must be upheld.
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