| More international joint ventures (IJVs) have been formed recently in China than in any other nation. The performance of U.S.-China equity joint ventures in the dynamic Chinese economy is examined from the perspectives of both U.S. and Chinese managers. Bilateral comparisons and explanations of IJV outcomes have received scant attention in the international marketing literature.;The research centers on the performance criteria used by IJV managers at the operating and the parent company levels. Factors that affect performance are also analyzed.;Performance issues are investigated in eight IJVs by case analysis methods. In-depth interviews were conducted with operating managers at the IJVs and with senior managers at the corresponding U.S. and Chinese parent companies in China, Hong Kong, and the U.S. Other data were collected from IJV experts and secondary sources, and the triangulated data were analyzed in an interpretivist manner, including the use of repertory grid techniques.;An integrated framework linking government, organizational structure, operating strategy, industrial structure, and performance is developed. A number of hypotheses are generated, including the following principal findings. Performance criteria used by IJV participants are converging--particularly at the operating level. Interpartner learning helps explain the notable shift to the use of profitability criteria by Chinese. The highly satisfactory financial outcomes found in this research are leading to incremental acquisition of the IJVs by U.S. parent companies. However, U.S. participants are most satisfied with the IJV when they have dominant decision making control. The influential role of government on IJV structure, strategy, and performance is revealed. Yet, the importance of government and the associated need by foreign companies for a Chinese partner appear to be diminishing as China's economy incorporates more market mechanisms.;Managerial implications concern the identification and management of performance criteria, the design of appropriate IJV structure, and the identification and implementation of critical IJV tasks. Public policy implications center on China's possible admission into the General Agreement on Tariffs and Trade (GATT). |
