One reason why firms may decide to form a joint venture is; To Share Risks and Costs.
Sharing Risks and Costs: Companies often create joint ventures to collaborate with another business, sharing both the risks and the costs associated with a specific project or business venture.
This can be particularly beneficial when entering new markets or pursuing large-scale initiatives because joint ventures provide companies with the opportunity to enter new markets or gain access to specific technologies that they might not possess on their own.
Collaborating with another firm in a joint venture allows for shared resources and expertise, enabling both parties to benefit from the synergy created by combining their strengths.