Abstract
Fast transforming marketplace and rising risk of operating environment is causing marketplace become increasingly difficult to predict and manage. In order to pursue higher growth and increase competitiveness, enterprises are reaching out for various cooperation models. Due to limited resource and technology, to form a joint venture with another company is a fast route to preserve and enhance company’s own competitive advantage. Due to the complexity of the management relationship of a joint venture, it will need a specialized management methodology. The effectiveness of the management will increase its competitiveness. Therefore, governance of a joint venture company has become a critical subject, one that can have great impact on the joint venture’s performance and success. This research examines the joint venture from management’s perspective, using joint venture company “D”, formed by company “A” and company “E”, as the case study to investigate the strategic consideration behind the joint venture, how it develops its management strategy, also take the opportunity to understand LCD chemical material industry. This research is through information gathering on company “D” and interview with related personnel to understand the reasons behind the decision to form a joint venture, and analyze whether or not company “D” management strategy will achieve management efficiency and increase corporate competitiveness. From this research, the managing methodology of joint venture did very good to help & improving the performance & capability of joint venture. But restricted by parent company, it is difficult for joint venture to proceed a diversified strategies for future growth. The advantage & disadvantage would be very important reference for setting up a joint venture.