Sino-Foreign Joint Ventures-A Success Factor Analysis

As many Joint Ventures fail in China, the purpose of this thesis was to investigate the factors that have an impact on the success of the entity. A literature review revealed the eight most important factors, including cultural similarity, control, complementary resources, matching objectives, communication, commitment, equity structure and guanxi, which were used as a basis for conducting a quantitative survey asking for participants’perception, which was sent to300foreign contacts in TVs in China. With a response rate of12percent, the empirical and descriptive analysis of the results confirmed most variables but also showed a few surprises. Cultural similarity was given only slightly positive impact and low importance. Apart from that it also showed other factors that have not received much attention in the past, like capital resources (on foreign partner’s side), domestic market experience (on Chinese partner’s side) and legal protection while operating the venture. As there are a few limitations to consider, this thesis might not be generalizable but presents a rather good base for future research.