- On The Governance Model Of Joint Ventures In Japan, Fuji Xerox, For Example,

International joint venture is invested and established jointly by international enterprise and domestic enterprise of host-country under the law of host-country which involves joint management, share of profit, loss and risk between both partners. In essence, it is a kind of FDI. International joint venture has its own advantage and disadvantages. Peter F·Drucker pointed out that relevant independence to parent companies is an essential character of joint venture. The establishment of Fuji-Xerox is a part of Xerox's global strategy and the suitable governance structure and operation mechanism gave the joint venture good platform to develop. Another important factor for Fuji-Xerox's more than 40 years of continuous development is that both the abroad parent company and the joint venture can adjust the cooperation criteria actively according to the change of interior and exterior environment. The driving force of the adjustment of governance structure is to pursue of the best efficiency of cooperation between partners. In studying the governance structure and operation mechanism of Sino-Foreign joint ventures, the recognition of the difference of background factors is very important. These differences are usually reflected in investment agent, economic system, political system and culture background. The governance structure of Sino-Foreign joint ventures can be analyzed from the following aspects: shareholding structure, governance structure and non-share control. Meanwhile, many Sino-Foreign companies have got its own governance localized to fit the political and economic environment. And management across cultures also should be included in the framework of this study.As a successful international joint venture, Fuji-Xerox provide lessons to Sino-Foreign companies such as the influence of share-holding control, the choice of subaltern solution in cooperation and the learning ability from each other.