Research On The Impact Of Joint Venture Control On The Independent R&D Capabilities Of The Joint Ventures

In order to promote the development of the automobile manufacturing industry,China has emphasized the policy of "market-for-technology" since the 1990s,and actively introduced foreign companies to establish joint ventures with Chinese enterprises to learn advanced technologies and promote independent research and development.In 1994,the company announced that the ratio of foreign-invested shares in the automobile industry should not exceed 50%to protect the interests of China's joint venture parties.As a result,a large number of 50:50 shares of Sino-foreign automobile joint ventures under common control have emerged in China.However,in the past 20 years,most of China's car companies have not exchanged technology.Many Chinese car companies have not learned advanced technology,and their independent research and development capabilities have not been effective.Therefore,how to effectively enhance the absorption of technology learning through the joint venture model and promote higher-level technological innovation of enterprises has become an urgent problem for the Chinese joint venture in the automotive industry.In the past,many studies focused on the joint ventures' joint ventures' research on the financial performance of the joint ventures.However,under the realistic situation that the average joint venture stock ratio(50:50)became a common phenomenon and the domestic joint venturers' independent innovation capability has not been greatly improved.There are few literatures exploring the deep-seated reasons for the joint venture's independent R&D capabilities.Based on the importance of R&D learning through joint ventures in China's auto industry and the above theoretical gaps,this paper analyzes the factors affecting the independent R&D performance of joint ventures under joint control.This paper uses the normative research method to define the concept of joint venture control and combs the research on the relationship between joint venture motives and joint venture control on the independent research and development of joint ventures and finds the laws and existing deficiencies revealed by the existing research institutes.Theory,resource dependence theory,resource-based theory,etc.further analyze the impact of joint venture motives on joint venture control,and ultimately lead to the relationship between R&D performance of joint ventures and form a research framework of "joint venture motivation-segmentation control-independent R&D performance".Specifically,this paper uses case analysis method,based on the typical case of Brilliance Auto,by combing and analyzing Huachen Automobile to establish a joint venture,the process and effect of independent research and development,and analyzing the innovative performance and finance of independent R&D investment and output after joint venture.The performance has caused the establishment of joint ventures in the automotive industry to reflect on the influencing factors and deep-seated reasons for the independent brand innovation of China's joint venture partners.The study found that in the case of a joint venture with a 50:50 common stock ratio,although a small number of companies can learn foreign technology and enhance their independent innovation capabilities,many joint ventures are like Brilliance Auto,although the stock ratio is 50%.However,the internal control of the technology has not been mastered.Not only has the independent research and development capability not been improved,but its resources have been drawn and its research and development capabilities have declined.After research,this paper has obtained the following conclusions:Under the common stock ratio,the joint venture party is actually driven by the joint venture,and there is actually a control division within the joint venture.Due to the imbalance of control in key management areas such as technology,the Chinese cannot learn.Advanced technology and independent innovation have verified the role of"joint venture motivation-segmentation control-independent R&D performance" and improved the research mechanism of joint ventures'independent research and development.The conclusions of this paper can provide reference for Chinese joint venturers to learn foreign technology through joint ventures and promote independent research and development.In the initial stage of the establishment of the joint venture,it is necessary to identify the foreign joint venture motive through the division of control rights between the joint venture parties.For joint ventures with equal control division,it is not only beneficial to the benign development of the joint venture itself,but also positively promotes the technical learning and independent innovation of the joint venture parent company.In the case of joint ventures with unequal division control,the joint venture party with the dominant resources may have incentives for resource extraction,which is not conducive to the development of weak joint ventures.It is also recommended that investors and stakeholders use the control rights of the joint venture to identify the joint venture motives of the joint venture parties,and accordingly predict the future development direction and performance changes of the joint venture and the joint venture parties,so as to make favorable investment judgments and cooperative decision-making;It is suggested that the government departments play a strategic guiding role,strongly promote the formation of a unified alliance among the auto industry in various regions,change the situation in which each region and each enterprise fights each other,seize resources,and enhance the bargaining power of China's auto industry in foreign negotiations,and ultimately promote China.The healthy development of the automotive industry promotes the development of independent brands.