Equity Ownership: I propose a 60%/40% split in favor of Nora. This allows Sakari to reap greater rewards than the initial proposal, and incentivizes them to value the success of the JV. Legislative changes in Malaysia have allowed increased foreign investment, and the 70%/30% split advocated by Nora is no longer mandated. Increasing Sakari’s ownership has significant benefits, as it lays the groundwork for them to use the JV as an export hub for expansion across Asia. The proposed split is also commensurate to the technological expertise that Sakari brings to the table, while accounting for the investment and deal-flow provided by Nora’s TMB contract.
2. Technology Transfer: The split proposed above also aids the resolution of this concern. Here, I advocate the ‘screwdriver’ based assembly approach advocated by Sakari for the SK10. However, in the interest of both firms, they should agree to set up R&D facilities within the JV structure for collective research on new products for the Asian market. This allows Sakari to protect their existing IP, while allowing both firms to learn and profit collaboratively. This is an example of the integrative outcomes that would serve each party better than simply dividing the existing