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International Joint Venture (IJV) is a formal agreement in which two or more of business partners in order to accomplish a particular mutually beneficial project (Park 2010, 55). The aim of this report is to discuss two or more companies successful and unsuccessful to forming an international joint venture (IJV). Transaction cost approach is one of the circumstances to joint venture formation in order to minimize cost of production and also reduce risks of business. Besides, organizational learning is another circumstances that enter and into a joint venture to learn foreign knowledge about the business and skill from another partners.
This report has considered several reasons why one succeeded and other one failed of the companies. Daimler Chrysler faced the impact of cultural differences that causes Daimler failure on IJV performance. Language barrier always be the problem of communicating. Moreover, lack of management is one of the failure reasons for Daimler due to the ineffective leadership of the president. Poor management with human resource management can be the main reason of failure. Chery Jaguar Land Rover, the human resource management is providing high standard of service and also attracting talented people to stay is the key success of the organization. The management skill of Chery Jaguar Land Rover is a high top quality management.
It is recommended that managers and the partners of Daimler Chrysler must improve the communication skills to understand each other. Communication skills such as face to face communicating can help both sides to solve the problem of conflict because the more you communicate. In addition, they are more comfortable and confident to use own languages and accent to communicate with other people. Furthermore, Daimler Chrysler should find a potential president with effective leading skills and having an early planning on how

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