NPD through Cooperation in IJV

This paper examines one way of analysing the nature of cooperation processes through new product development (NPD) projects in automotive industry, in particular, in international joint venture setting. Building on the concept of strategic alliances, this study links strategic alliances and NPD together under the concept of cooperation, which is central to the research. It builds on the multi-project management research and extend it to a setting in which multiple firms are involved. It shifts the focus of NPD research in the automotive industry toward strategic alliances in order to shed light on the effective multi-project management between firms that share a platform. Partner companies not only provide an IJV with their own platforms for NPD projects, but also impose their embedded norms and practices that have been developed over time. This aspect makes the multi-project management in an IJV complicated and differentiated from that in a single firm setting. This paper also illustrates the evolution process of cooperation at the inter-company level. Cooperation is one of the central issues for any operative alliance. In practice, cooperation within an international joint venture (IJV) is idiosyncratic with multiple facets. To compound the issue, economic and non-economic incentives may distort cooperation by either encouraging or discouraging interactions. This variability in the manifestation of cooperation suggests the importance of observing interactions over time in order to deepen our understanding of the evolution of cooperation. Trust underpins the achievement of cooperation. Yet, theories of trust in the context of an IJV are relatively under-developed. Further research can illuminate under what circumstances do functions and the partner companies of an IJV develop trust that induces cooperation. Examination of trust and cooperation through complementary theories will produce a holistic analysis.