Međunarodna zajednička ulaganja u Republici Hrvatskoj
International Joint Investments in the Republic of Croatia

Summary/Abstract: Strategic integration of companies from different countries has become an increasingly attractive method of business internationalisation. International joint investments represent a form of cooperation between two or more companies from different countries through which a new business and legal entity (joint venture) is founded, formally separated from its parent companies, i.e., companies that established it. This paper examines and analyses the motivation of Croatian companies for entering into international joint ventures, the impact of joint investments on the development of parent companies business as well as the performance of the entity (company) established through international joint investment which includes examination of investment risks and control exercised by parent companies over the joint venture, as well as investigation of key parameters for performance evaluation of such international joint investments. Theoretical analysis along with the results of the analysis of Croatian companies’ practices have shown that companies’ main motivation for establishing a joint venture is the need for capital and resources, increase of market share, reduction of operational costs, and improvement of negotiating position towards customers and providers which was an important motive of all surveyed companies. It was established that the majority of companies was satisfied with the results of joint investments from all aspects and it can therefore be concluded that international joint investment entities in Croatia are successful in their performance.

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