Factors affecting joint venture performance in PRC

The study of joint venture performance in China is important due to the increasing number of establishments and value of foreign investment. However, prior studies have mainly focused their analysis on the joint ventures in developed countries, and their findings cannot be generalized directly to the Chinese setting. This article fills the gap by reviewing the recent studies of the factors affecting joint venture performance in PRC. Basing on the studies of joint venture performance in China, it can be seen that Chinese and U.S. managers prefer to use different criteria to evaluate the performance of IJV. For instance, due to the state objective and socialist ideology, Chinese side mainly evaluate the performance of IJVs on the basic of economic development dimensions, while U.S. managers prefer to use enterprise output measures to evaluate IJV performance. In addition, most recent studies of factors affecting joint venture performance in China emphasize on partner-related factors and joint venture-related factors, instead of the environment factors of joint venture. Basing on the analysis of the recent studies, some implications for future study of factors affecting joint venture performance in PRC are derived.