Abstract
This study examines what Chinese firms are looking for from foreign partner contributions. It identifies strategic, organizational, and financial attributes that are important to Chinese business satisfaction with the performance of international cooperative ventures (ICVs). It finds that a foreign partner's strategic attributes, namely technological capability, foreign market power, and international marketing expertise, and its organizational attributes, including managerial skills and organizational reputation, are positively associated with ICV performance as perceived by Chinese firms. By contrast, financial attributes are not important to Chinese partners. Different from foreign firms in organizational contingencies and institutional constraints, Chinese firms are asymmetrical with foreign firms in terms of strategic needs for ICV formation and partner selection criteria. They select foreign partners based upon market expansion and knowledge acquisition considerations rather than transaction cost concerns.
| Original language | English (US) |
|---|---|
| Pages (from-to) | 481-493 |
| Number of pages | 13 |
| Journal | Journal of Business Research |
| Volume | 55 |
| Issue number | 6 |
| DOIs | |
| State | Published - Jan 6 2002 |
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Keywords
- Chinese firms
- Joint ventures
- Partner selection
ASJC Scopus subject areas
- Marketing
- Applied Psychology
Cite this
Partnering with foreign businesses : Perspectives from Chinese firms. / Luo, Yadong.
In: Journal of Business Research, Vol. 55, No. 6, 06.01.2002, p. 481-493.Research output: Contribution to journal › Article
}
TY - JOUR
T1 - Partnering with foreign businesses
T2 - Perspectives from Chinese firms
AU - Luo, Yadong
PY - 2002/1/6
Y1 - 2002/1/6
N2 - This study examines what Chinese firms are looking for from foreign partner contributions. It identifies strategic, organizational, and financial attributes that are important to Chinese business satisfaction with the performance of international cooperative ventures (ICVs). It finds that a foreign partner's strategic attributes, namely technological capability, foreign market power, and international marketing expertise, and its organizational attributes, including managerial skills and organizational reputation, are positively associated with ICV performance as perceived by Chinese firms. By contrast, financial attributes are not important to Chinese partners. Different from foreign firms in organizational contingencies and institutional constraints, Chinese firms are asymmetrical with foreign firms in terms of strategic needs for ICV formation and partner selection criteria. They select foreign partners based upon market expansion and knowledge acquisition considerations rather than transaction cost concerns.
AB - This study examines what Chinese firms are looking for from foreign partner contributions. It identifies strategic, organizational, and financial attributes that are important to Chinese business satisfaction with the performance of international cooperative ventures (ICVs). It finds that a foreign partner's strategic attributes, namely technological capability, foreign market power, and international marketing expertise, and its organizational attributes, including managerial skills and organizational reputation, are positively associated with ICV performance as perceived by Chinese firms. By contrast, financial attributes are not important to Chinese partners. Different from foreign firms in organizational contingencies and institutional constraints, Chinese firms are asymmetrical with foreign firms in terms of strategic needs for ICV formation and partner selection criteria. They select foreign partners based upon market expansion and knowledge acquisition considerations rather than transaction cost concerns.
KW - Chinese firms
KW - Joint ventures
KW - Partner selection
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UR - http://www.scopus.com/inward/citedby.url?scp=0037028469&partnerID=8YFLogxK
U2 - 10.1016/S0148-2963(00)00178-8
DO - 10.1016/S0148-2963(00)00178-8
M3 - Article
AN - SCOPUS:0037028469
VL - 55
SP - 481
EP - 493
JO - Journal of Business Research
JF - Journal of Business Research
SN - 0148-2963
IS - 6
ER -