Abstract—Investment in a new foreign market is a strict challenge for any companies, especially for a small or medium company. For bigger company with bigger capital and capabilities, investment in a new foreign market, although also risky, becomes a very rewarding investment. By performing a joint venture with a local company at the destined market, the foreign company could absorb the knowledge and experience to survive in the new market without spending a lot of capital and funds. The main objective of this research is to investigate what factors affect the success of a joint venture between a foreign company and a local company. The research designed five dimensions of factors that will affect the success of a joint venture between a foreign company and a local company. This study could provide some implication of investment strategy for foreign elevator companies to establish a joint venture in Indonesia. This study adopts the following research methods: Fuzzy Delphi Method (FDM), Decision Making Trial and Evaluation Laboratory (DEMATEL), and DEMATEL Analytic Network Process (DANP). The evaluation factors of joint venture model are divided into 5 different dimensions: Win-win, Synergy, Consistency, Interaction and Complementary. The result of this study revealed that the synergy dimension will influence the other 4 dimensions. Meanwhile, the third dimensions, Interaction, is influenced by all four dimensions.

Index Terms—Joint venture, FDM, DEMATEL, DANP.

The author is with Joint venture, FDM, DEMATEL, DANP (email: wkunliu@fcu.edu.tw).

Cite: Weng-Kun Liu, "The Decision Making of Transnational Joint Venture Model: Case Study of Elevator Industry in Indonesia," International Journal of e-Education, e-Business, e-Management and e-Learning vol. 9, no. 2, pp. 81-89, 2019.