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Joint venture success in China: How should we select a good partner?

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  • Lu, Yadong

Abstract

The success of international joint ventures investing in emerging economies, most notably China, largely depends on the selection of local partners. This study illuminates various partner selection criteria that are important to the survival and growth of foreign companies active in China. Broadly, this study reiterates three categories of criteria: strategic, organizational, and financial. A partner with superior strategic traits but lacking strong organizational and financial characteristics may result in an unstable joint venture. The possession of desirable organizational attributes without corresponding strategic and financial competence may leave the joint venture unprofitable. A partner with superior financial strengths without strategic and organizational competencies can lead to an unsustainable venture. The managerial implications for world business managers are highlighted.

Suggested Citation

  • Lu, Yadong, 1998. "Joint venture success in China: How should we select a good partner?," Journal of World Business, Elsevier, vol. 33(2), pages 145-166, July.
    • Handle: RePEc:eee:worbus:v:33:y:1998:i:2:p:145-166
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    1. Yadong Luo, 1998. "Timing of Investment and International Expansion Performance in China," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 29(2), pages 391-407, June.
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    5. Jefferson, Gary H & Rawski, Thomas G & Yuxin, Zheng, 1992. "Growth, Efficiency, and Convergence in China's State and Collective Industry," Economic Development and Cultural Change, University of Chicago Press, vol. 40(2), pages 239-266, January.
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