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International equity JVs in China: operations and potential close-down

Author: Vanhonacker, Wilfried R. ; Yigang, Pan ; Pitts, Robert EINSEAD Area: MarketingIn: Journal of Global Marketing, vol. 8, no. 3-4, 1995 Language: EnglishDescription: p.125-149.Type of document: INSEAD ArticleNote: Please ask us for this itemAbstract: In this study the authors explore various operational issues foreign managers have suggested as being problematic in managing EJVs in China. The authors are particularly interested in identifying which of these concerns weigh heavily in the decision or thought of closure. The foreign general managers of 73 operating EJVs in China were interviewed about operational issues as well as whether they had considered or are considering closing down the operation. Based on these personal interviews the authors identified areas of operational concerns and linked those potential closure considerations. Where the magnitude of the perceived problems is difficult to analyse systematically across the venture, significant differences in the nature of the problems interpreted. The results indicate that closure considerations are not uncommon and are prevalent in domestic-market oriented ventures where the foreign partner is non-Asian and has a substantial equity stake
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In this study the authors explore various operational issues foreign managers have suggested as being problematic in managing EJVs in China. The authors are particularly interested in identifying which of these concerns weigh heavily in the decision or thought of closure. The foreign general managers of 73 operating EJVs in China were interviewed about operational issues as well as whether they had considered or are considering closing down the operation. Based on these personal interviews the authors identified areas of operational concerns and linked those potential closure considerations. Where the magnitude of the perceived problems is difficult to analyse systematically across the venture, significant differences in the nature of the problems interpreted. The results indicate that closure considerations are not uncommon and are prevalent in domestic-market oriented ventures where the foreign partner is non-Asian and has a substantial equity stake

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