Overview and comparison of profit sharing in different business collaboration forms

Abstract

Growing international business has brought a variety of collaborative business structures. In the paper the problem of profit sharing is analyzed for diverse business collaboration forms. It is the purpose to give an overview of the main influence factors of profit sharing. The overview is limited to the most common collaboration forms: multinational company, franchise system, joint venture and cluster. It is shown that the factors that mostly influence the profit sharing are the input balance of every member, which is expressed as the aggregate of profit (financial benefit) and the technology (intangible benefit). Finally, the different business collaboration forms are compared. © Vilnius Gediminas Technical University, 2010.