Lessons for Joint Ventures in China - 4656 Words

Lessons for Joint Ventures in China. Danone and Wahaha Case Study. 1 Lessons for Joint Ventures in China Danone and Wahaha Case Study 8/17/2012 MSc International Management programme Management across Cultures Prague College Lessons for Joint Ventures in China. Danone and Wahaha Case Study. 2 Contents 1. 2. 3. Objectives and scope. ........................................................................................................................... 3 Joint Venture: definition and relational factors.................................................................................... 4 Comparison of French Chinese cultural models. Hofstede’s model ................................................. 5 4. Short†¦show more content†¦Their research was conducted in order to find out the impact of trust and commitment on performance of international joint ventures. It was discovered that trust is the most significant factor that affect on level of joint venture’s satisfaction. In addition, they stated the importance of commitment on performance of IJVs as a significant factor along with trust. Fukuyama (1995) defines trust as â€Å"the expectation that arises within a community of regular, honest and co-operative behavior, based on commonly shared norms, on the part of other members of that community.† Wilson and Brennen (2008) noticed that â€Å"development of a trustworthy partnership has been argued to be the most effective way of prolonging a business relationship†. Fukuyama (1995) described trust in the Chinese culture as ingroup trust at the personal level, whereas trust in Western culture is system trust built up at the organizational level (im personal). This systems trust is tied to formal, societal structures, which have an Lessons for Joint Ventures in China. Danone and Wahaha Case Study. 5 existence separate from the material preferences, motivation and actions of individuals. What underlines systems trust in many respects is the contract. Fukuyama distinguishes high-trust societies form low-trust ones (Child, 2005, p. 340). Building trust is essential for maintaining a long-term business relationship in a joint venture. There needs to be a mutual understanding between the ChineseShow MoreRelatedA Chinese Technology Company for Sale1015 Words   |  5 PagesGlobal Entrepreneurship Case study QI-TECH: A Chinese Technology Company for Sale Name: Choi Ying Kai SID: 06523393 Date edited: 11-11-2007 Case background: QI-TECH, a Chinese manufacturer of precision Coordinate Measurement Machines, is a joint venture established by Indiver BV, a Dutch aircraft engine manufacturer and a Chinese state-owned enterprise QQMF. Looking for a strategic exit, Indiver BV, which holds 50% of QI-TECH, must negotiate a sale with its Chinese partner and a potential buyerRead MoreShui Fabrics Case Study Essay1485 Words   |  6 Pagesmanaging in a global environment. 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