Beyond National Boundaries: Considering the View from Both Sides of the Table

The People's Republic of China (PRC) represents the most active market for international joint ventures (IJVs) in the world. Investors from the US and Europe are some of the leading investors making those investments. The motivations of both parties to the IJV are known to be critical to its ultimate success. Unfortunately, there is very little understanding of how much motivations vary among the different participants in an emerging market like China. Therefore, this manuscript investigates IJV motivations from the perspective of both Chinese and Western managers. The qualitative and quantitative analyses conducted with both Chinese and Western managers indicate that Chinese and Western managers have significantly different IJV motivations. Especially, differences were seen in the importance on learning from the joint venture, whereas their Chinese partners focus much more on the ability of the joint venture to provide an immediate short-term strategic benefit. The incorporation of such differences in the development of the IJV and its establishment of priorities will be critical to fostering greater success. [PUBLICATION ABSTRACT]