Sustainable International Joint Ventures: The case of M&D Bygg

Abstract: Purpose - The purpose of this thesis is to explore and describe the opportunities and challenges that can arise when integrating corporate social responsibility (CSR) awareness, in the building of a international joint venture as an entry more to developing countries -low and middle income countries, in terms of the contribution to the economic, social and environmental development of these countries. Theoretical framework – The literature used as a base for this academic paper includes concepts and theories on international joint ventures and corporate social responsibility (CSR). Consequently, from all those theories, the authors build the concept of sustainable international joint venture (SIJV), which is the theoretical base of the paper. The SIJV concet focuses on the integration of CSR awareness to the different components (environment, individuals, process and organization) of international joint venture, in order to contribute to the sustainability of the local context where the joint venture is created. Methodology – For the purpose of this research, a holistic single case study is implemented. The case study is about the international joint venture M&D Bygg created in Kenya between the Swedish company, Mattias Bygg AB, and the African company, M&D Home. To approach the case study, four face to face, 3 skype/online interviews and one telephone interviews were conducted based on semi-structured interview questions. Findings –The empirical findings of the case study comply with the concept of sustainable international joitn venture proposed by the authors in the theoretical framework. However, in some component, the authors found additional aspects that should be taken into consideration when building an international joint venture. For instance, in the individuals stage, the findings showed that “the supporters” is a new category that should be addressed and in the process stage, besides the ”negotiation of the agreement”, another category about ”external financing”. Conclusion – CSR awareness is a needed linking aspect that need to be transversally included in every component of a joint venture formation. This means that the environment, individuals, process and organization of the joint venture, need to be linked by the common interest adding economic value to the partners involve and at the same time, to the society. This in the end, contributes to the economic, social and environmental sustainability of the host country.