Cultural Differences, Ownership Differences, Industry Differences On The Organizational Effectiveness Of The Joint Venture

Since China entered the WTO, more foreign direct investment (FDI) has flown into China, and there is also a tendency for more wholly foreign-owned enterprises to appear. Meantime, China's enterprises have gone, or been going abroad to set up joint ventures. The research on joint venture has focused on entry mode and Corporate Governance structure. so under the new circumstance there is a need of joint venture research, in particular, organizational effectiveness study of joint ventures.The cross-cultural research on international joint ventures, initiated by Gerte Hofstede and other scholars, has attained fruitful achievements. In China, some researchers have made some qualitative researches on joint ventures in terms of Gerte Hofstede'theory of five dimensions of cultural differences. Based on the researches of Gerte Hofstede, Robert J. House developed the theory of cultural differences through extensive investigation and research. Specifically, Robert J. House proposed the nine dimensions theory of cultural differences, and scored major countries and regions in the world in each dimensions. Based on House's theory, this quantitative research is carried out combining with shareholding structure and distribution of industries of joint ventures, to study organizational effectiveness from a new perspective, which might provide joint ventures information for management and operations, as well as give help to Chinese enterprises going abroad.After some related theories and empirical researches are reviewed, including cross-cultural theory, joint ventures theory and Top Management Team theory. this paper proposed the logic figure of thoughts in organizational effectiveness and study framework, and hypotheses between cultural differences, differences in ownership, differences in industries, and organizational effectiveness. The World Bank's 2001 survey of 382 joint ventures is used for data analysis, through descriptive statistical analysis, independent samples T-test, correlation and regression analysis., methods, the results showed that two dimensions bold Assertiveness, In-Group Collectivism of cultural difference have certain effects on gross rate of return on assets; meanwhile, the study also found that sale profit rate of high-tech industry joint ventures is higher than that of the non-high-tech industry joint ventures. The paper combined cross-cultural theory, joint ventures theory and top management team theory, and employed House's nine dimensions theory of cultural differences in quantitative analysis. Theoretically, the study added empirical supplements for the previous joint ventures and cross-cultural researches. Practically, the results and conclusions of this paper also provided a useful reference for management and operation in joint ventures.