A Joint Venture (JV) is a strategic partnership between two or more organizations that come together to execute a specific project or business initiative while remaining legally independent entities. JVs are commonly formed to share resources, reduce risks, and leverage expertise to achieve a mutual goal.
In project management
JVs can be beneficial for large-scale projects that require specialized skills, technology, or financial backing from multiple organizations. Each party contributes to the venture—whether through capital, workforce, or intellectual property—and the profits, losses, and control are typically distributed as per an agreed-upon contract.
For example
two construction firms might form a joint venture to build a highway infrastructure project, combining expertise in design, engineering, and project execution. While JVs provide an opportunity for growth and innovation, challenges such as differences in corporate culture, decision-making conflicts, and revenue-sharing disagreements must be carefully managed.
