Document Type

Article

Publication Date

1996

Publication Title

California Management Review

First Page

106

Last Page

130

DOI

http://dx.doi.org/10.2307/41165835

Abstract

Based on an in-depth study of U.S.-China joint ventures, this article offers some insights into the performance of such international business relationships. While the conventional literature treats government as an amorphous aspea of the political-legal environment, in this case government is an active participant and influence in the performance of international joint ventures (UVs). It has both a constraining and enabling effect on LJV structure, strategy, and performance. For example, limits can be placed on ownership shares of joint ventures and on prices of the output. At the same time, government can cooperate with LJVs and foreign parent companies by creating partners for foreign parent companies, acting as major customers, and improving financial performance by lowering taxes.

Rights

This article was archived with permission from University of California, all rights reserved. Document also available from California Management Review.

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