International Equity Joint Ventures in China:

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Abstract
In this study, we explore various operational issues foreign managers have suggested as being problematic in managing EJVs in China. We 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 thay had considered or are considering closing down the operation. Based on these personal itnerviews, we identified areas of operational concern and linked those to potential closure considerations. Where the magnitude of the perceived problems is difficult to analyse systematically across the ventures, significant differences in the nature of the problems can be interpreted. Our results indicate that closure cibsuderatuibs are not uncommon, and are prevalent in domestic-market oriented ventures where the foreign partner is non-Asian and has a substantial equity stake. Those considerations are based on not only more aggravated percepti...

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