Joint Venture Culture Conflict Management Study

The form of JV has been existing for rather a long time, yet the successful ratio of today’s JV is still not high and there is actually comparatively high failure ratio. From the demestic view point, JV successful ratio is far lower than we anticipated. As per the related statistics, among the domestic JVs,15%around come to an ultimate end before the JVs’ cooperation contracts are terminated,70%around are having problems in good cooperation between the shareholders, and only very few JVs can run their business as normal. There are more and more sino-foreign cross culture differences and conflicts in the JVs’operation, and those conflicts have already caused the severe influence on the normal operation of JVs.Whereas there are the above mentioned internal cross cultural conflicts in domestic JVs, this dissertation selected the sino-foreign JV where the author works-Shanghai Secco Peterchemical Co., Ltd. as the study object. Based on the related theories of cross culuture management and cross culture conflict management, using the cases in three phases, this dissertation studied and analyzed Secco project phase, commercial operation phase and expansion stragetic phase. The study shows that during Secco project phase, the main differences and conflicts of sino-foreign sides are the organization structure conflict, safety phisolophy conflict and working-life style difference; during Secco operation phase, the main differences and conflicts of sino-foreign sides are the management line report difference, corporation internal opportunism conflict, briefing style and meeting form difference, performance appraisal difference, and staff promotion&incentive mechanism difference; during Secco expansion strategic phase, the main differences and conflicts of sino-foreign sides are the professional manager system difference and understanding of Chinese policy difference.The cross culture conflict management study of this dissertation only focuses on one JV as the case study target, so the improvement suggestion summarized and the main results could probably not be suitable for other domestic JVs or JVs cooperated with others countries. There is still some hope those improvement suggestion would be used for reference for other domestic JVs.