The Complementary Relationship Of The Joint Venture Parties To Invest Resources On The Joint Venture Performance Impact

Sino-foreign joint venture has been the most important way for China to use foreign direct investment (FDI) since more than twenty years ago, and the rapid progress of Chinese economy owes much to joint ventures (JV). But FDI have shown a distinct strategy after P.R. China joined WTO. It seems that multinational enterprises (MNE) no longer need their Chinese partners. More and more MNEs tend to use self-owned corporation to start their business, and some foreign parents of JVs have shown their aspiration to operate the company by themselves. The trend indicates that there must be something wrong. On the other hand, joint venture is a business form that has no substitute. Sometimes it is the most valuable way to operate one's business. So we need a new view to interpret joint venture and a new method to solve the problems.On the premise of resource-based theory, this article has found the causality between JV performance and the resource complementarity the partners invested in joint venture. By means of literature study, investigation and case analysis, a vivid framework is given as well as the former conclusions are proved or disconfirmed. The framework can provide Chinese enterprises a systematical view if they want to use the strategy of joint venture, and is also useful for Chinese partners who have been involved in Sino-foreign joint ventures.Literature study was firstly used to review the studies and analyze the results and shortage, which include literatures about joint venture, resource-based theory, the effect resource complementarity imposing on joint venture performance and also the measurement of complementarity and JV performance. Secondly, a framework is given and the investigation is programmed. Then follows the statistical analysis, whose purpose is to find the relationship among the data by using tools of statistics. The meaning of the outcome is interpreted after the analysis. In this section, correlate analysis is used to find the relationship among complementarity, control and performance, factor analysis to conform the original data into several aspects, and path analysis to find the causality between these aspects based on previous conclusion and hypothesis. Case analysis is used to complement the result of statistical analysis. At last, we get the conclusion by comparing the result of case analysis and data analysis. The meaning of the conclusion is given in this section. Then follows the innovation and shortage of this study, and also the prospect of following studies.