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Managing relationships within sino-foreign joint ventures

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  • Hoon-Halbauer, Sing Keow

Abstract

In setting up joint ventures (JVs) in the PRC, foreign staff are compelled to go through a painful management process. This includes encountering a myriad of problems and difficulties, ranging from external environmental problems to internal organizational conflicts of interest. Based on an empirical study of two leading JV pioneers in China, Shanghai Volkswagen Automotive Company Ltd. (SVW) and Beijing Jeep Corp. (BJC), this article suggests that the problems encountered are, in most cases, attributable to managerial relationships and human interaction. It submits that managers working within JVs in China would benefit greatly from understanding the dynamics of the relationships. Looking at this situation from both Western and Chinese perspectives, it sets out to describe the essential themes found in three principle managerial relationships: 1) between two/more parents; 2) between parents and the venture; and 3) between two groups of staff.

Suggested Citation

  • Hoon-Halbauer, Sing Keow, 1999. "Managing relationships within sino-foreign joint ventures," Journal of World Business, Elsevier, vol. 34(4), pages 344-371, January.
    • Handle: RePEc:eee:worbus:v:34:y:1999:i:4:p:344-371
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    References listed on IDEAS

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    1. Hu, Michael Y. & Chen, Haiyang, 1996. "An empirical analysis of factors explaining foreign joint venture performance in China," Journal of Business Research, Elsevier, vol. 35(2), pages 165-173, February.
    2. Seung Ho Park & Michael V. Russo, 1996. "When Competition Eclipses Cooperation: An Event History Analysis of Joint Venture Failure," Management Science, INFORMS, vol. 42(6), pages 875-890, June.
    3. Dacin, M. Tina & Hitt, Michael A. & Levitas, Edward, 1997. "Selecting partners for successful international alliances: Examination of U.S. and Korean firms," Journal of World Business, Elsevier, vol. 32(1), pages 3-16, April.
    4. Newburry, William & Zeira, Yoram, 1997. "Generic differences between equity international joint ventures (EIJVs), international acquisitions (IAs) and international greenfield investments (IGIs): Implications for parent companies," Journal of World Business, Elsevier, vol. 32(2), pages 87-102, July.
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    Cited by:

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    3. Buckley, Peter J. & Clegg, Jeremy & Tan, Hui, 2006. "Cultural awareness in knowledge transfer to China--The role of guanxi and mianzi," Journal of World Business, Elsevier, vol. 41(3), pages 275-288, September.
    4. David Rygl, 2012. "Differences in Partners¡¯ Perception and the Performance of German-Chinese Joint Ventures," Journal of Business Administration Research, Journal of Business Administration Research, Sciedu Press, vol. 1(1), pages 86-98, April.
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    6. Fainshmidt, Stav & White, George O. & Cangioni, Carole, 2014. "Legal Distance, Cognitive Distance, and Conflict Resolution in International Business Intellectual Property Disputes," Journal of International Management, Elsevier, vol. 20(2), pages 188-200.
    7. Wright, Mike & Filatotchev, Igor & Buck, Trevor & Bishop, Kate, 2002. "Foreign partners in the Former Soviet Union," Journal of World Business, Elsevier, vol. 37(3), pages 165-179, October.
    8. Jing Yang & Frank Tipton & Jiatao Li, 2011. "A review of foreign business management in China," Asia Pacific Journal of Management, Springer, vol. 28(3), pages 627-659, September.
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    11. Wayne, George & Darrel, Percy, 2013. "Team Performance in a Fractious Culture," MPRA Paper 58051, University Library of Munich, Germany.

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