Research Of Cross-Cultural Management In Joint-Venture Companies

With the development of the world economy, the globalization of enterprise management becomes more apparent. International trade, investment and production are running at unprecedented speed. At the same time, cross-cultural management emerges as a result of the development of such international business. CCM needs to focus the demands of consumers with different cultural backgrounds and to comply with the local customs, legal provisions and etc. Therefore, the multi-national corporations are forced to pay more and more attention on CCM.Based on the current CCM theory, the scientific and practical enterprise performance evaluation system for Joint-Venture (hereinafter"JV") companies is established in this essay. On the grounds of enterprise performance evaluation system for JV companies, the enterprise cross-cultural management evaluation system and the author's own understanding, this essay is aimed to provide guidance for the operation and management for multi-national companies, to improve the formulation of multi-cultural strategy, to promote the harmonization among different cultural, to establish unique enterprise cultural with endless values and coherence and therefore to increase the comprehensive quality of enterprise management.The cultural difference within JV has brought some negative effects to the enterprise. Value difference will make decision-making process much harder; policy difference will make management much more complicated; behavior difference will set up more obstacles for consistent action; beneficial difference will diminish mutual trust between JV parties. Most of these obstacles appear in the process of running a JV. However when launching a new project, proposing a new viewpoint, scheduling a new marketing plan or testing a new business model, the cultural diversity will also be beneficial. For example, fresh idea, territorial advantages will make JV companies more competitive in the market competition.This essay also analyzes the development and evolution trend of CCM. Based on the current enterprise evaluation method, the establishment of a new performance evaluation system-"Cultural adaptability and utilization evaluation system", which is supported by questionnaires provided by eight different JV companies, and statistic by using Analytic Hierarchy Process, AHP, Delphi method, weighted mean method, the essay tries to stimulate the overall standard of CCM performance in JV companies. According to the evaluation result of the culture adaptability and utilization system, the essay provides a series measures as the following to increase the quality of CCM:1. Analyzing and clarifying the cultural difference, facilitating both parties in JV company, understanding their counterparts cultural characteristic, and making clear where their difference exists.2. Cultivating management staff that suitable for cross-cultural environment for both parties; and improving their adaptability to social environment and working environment.3. Establishing consistent company culture, diminishing cultural contradiction, considering multi-party benefit, and improving entrepreneur compositeness.4. Cross-Culture training for JV parties. The managing boards should study and understand their counterpart's social economy, culture background, and the detail of the enterprise operation and learn the same language and cooperation knowledge to minimize the confliction.5. Implementing localization strategy to attract excellent local talents.This essay also needs to be further studied and discussed: First, CCM is a complicated issue including many aspects, some of which could be quantified, but lots of which could not be justified by numbers. Therefore, how to evaluate such aspects needs to be further discussed. Second, evaluation system standard is to comprehensively reflect the total CCM, which should be inter-connected without overlap. Therefore, how to determine the standard needs further consideration. In addition, in the scientific evaluation process, we need not only a complete system, but also scientific evaluation method and accurate evaluation standard. This essay is to focus on the analysis of the first two points. As for the evaluation standard, it needs entrepreneur and experts to further discuss for specific industry.