Learning from Joint Venture: The Rover–Honda Relationship

Abstract

The joint venture between Rover and Honda, which effectively lasted from 1980 to 1994, attracted widespread attention. Rover's importance to Britain's industrial heartland and place in a major global business were recognised, and it was hoped that collaboration could invigorate the product design and production management capabilities of an ailing national flagship. Yet both Rover and Honda ultimately failed to achieve their objectives, because of the organisational structures and corporate cultures prevailing within the companies at the time of the joint venture's formation. The origins of these embedded internal constraints are to be found in their particular histories, and, because Rover carried its legacy into the joint venture, it was prevented from boosting its core competencies. A harsh irony became apparent: Rover, entirely contrary to its strategic intentions, had become reliant on its partner.