Research On The Motivation And Operation Of Joint Venture Between Chinese And Foreign Exhibition Companies

With the prosperous development of China’s exhibition industry, foreign exhibiti on companies speed up the pace to enter the Chinese market, while the exhibition of E uro-American region have entered the mature period. In many entry modes, the transn ational joint venture is the main way for foreign exhibition companies to enter Chines e market. At present, there are three features for Sino-foreign joint exhibition companies, including with Britain and Germany exhibition company as the dominant factor, focusing on the first-tier cities, and being based on the combination of high quality projects.The paper is concerned above all else with Sino-foreign joint exhibition compani es, and mainly focuses on two questions: joint venture agent and joint operation of exhibition companies. The former researches issues before joint venture, and the latter studies issues after it. The innovation point of the article is to study joint ventures as a system, and to recognize the development course and development experience of join t ventures.The paper uses the case method as the main research methods, and studies the join development of Messe Frankfurt. The study finds that the study finds that joint venture agent of Chinese companies are as follows: solving the problem of funds, introducing the international resources, strengthening competitive advantages, learni ng advanced management methods and expanding business scope; joint venture agent of foreign companies include expanding China’s exhibition market, completing t he global strategic layout, scattering overseas investment risk, utilizing the advantages of host country and using the preferential policy of China. Above all, highly resource s complementary is the main reason to do joint venture for both sides. After joint venture, Messe Frankfurt gets great achievements, such as: increasing the size of the Guangzhou international lighting fair, implementing the project diversification, achieving the growth of financial indicators, and promoting the development of both the parent company. Furthermore, Messe Frankfurt forms a set of reasonable and effective operating mechanism, including equivalent shareholding structure, the board of directors consultation system, the Chinese leading factor of governance structure, harmonious cross-cultural management mechanism, the use of parent company, and the development mechanism of controlling the key resources.