Establishing Success Measurements of Joint Ventures in Mega Projects

Abstract

Joint ventures (JVs) in the oil and gas industry will not be disappearing anytime soon; the number of JVs is expected to increase in the near future as the global demand for energy resource increases. Joint ventures need to be measured correctly to properly asses their potential for success. This paper presented a study of 11 measures with respect to their contribution in measuring the degree of success of JVs. This research was supported by a variety of academic and private studies spanning several years; the aim was to develop a model that can be used in measuring the degree of success in JVs projects. Correlations and components analysis were used to examine the relations among measures and to discover underlying patterns. As a result, sustainability and financial measures were the two extracted success measures. Then, reliability test and structural equation modeling (SEM) were used to validate and findings and the relationships between measures and degree of success of JVs. The sustainability measure encompassed five factors including longevity, stability, community alignment, environmental influence, and dispute resolution. The financial measure consisted of five factors including profitability, market share, access to new markets, growth, and reputation.