Joint venture manufacturing in China: an exploratory investigation

Abstract

International joint venture (IJV) manufacturing is important for both the Chinese economy and a large number of foreign investors. A review of the literature from both Western and Chinese researchers showed that although the purpose and advantages of IJV manufacturing in China are known, a vital aspect – operations management – has largely been ignored. Therefore, exploratory interviews with managers at six companies were conducted to investigate the operations management issues faced by IJV manufacturers in China. Four main problems were identified: the difficulty with recruiting and training suitable employees; all aspects of supplier management; problems with achieving high‐quality output; and achieving an effective IJV business culture. The results have implications not only for researchers, in that they indicate where more research is necessary, but also for practitioners, since they identify the areas where IJV manufacturers are most likely to encounter problems in China.

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