Factors affecting international joint ventures performance in Tanzania

This study aimed at identifying the Factors affecting performance of International Joint Ventures (IJVs) in Tanzania, Specifically the study identified the social factors, economical factors, technological factors and governmental policies which have effects on performance of IJVs. The study was descriptive and used only primary data which was collected from the managers of both local and international construction firms operating in Tanzania. A multivariate analysis was applied. In case of social factors the study found that loyalty in the business operations, language used between IJVs’ partners, social network, cooperation, openness and transparency among other factors were lowering performances of IJVs. The study accepted hypothesis which state that there is negative relationship between social factors and performance of international joint venture in Tanzania. The study also accepts hypothesis which state that there is negative relationship between governmental policies and performance of international joint venture in Tanzania. It was concluded that performance of IJVs in Tanzania is very low and more improvement of both economic and technological conditions was recommended. Among the given recommendations it was stated that government together with other developmental stakeholders should work hard to improve state of technology in the country since technology has high influential power in determining performance of IJVs in the country especially in construction sectors.