The Impact Of International Joint Venture Entry Mode On The Development Of The Automotive Industry In China

Download or read book The Impact of International Joint Venture Entry Mode on the Development of the Automotive Industry in China written by Andrijana Bogdanovska Djurovic and published by . This book was released on 2013 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: The scope of the article is the automotive industry in China, while its aim is to explore whether joint ventures as the only allowed entry mode in the industry was the best choice of a model when it came to maximizing industry's performance. In the concerned case, as the research question is exploring the impact of the entry mode on the industry as a whole, the performance is measured through the survival rate of companies, duration of their operations until termination and company's stability i.e. whether the original partners left or new joined the entity. The findings indicate that the identified external and internal factors which shape and have shaped the context of the Chinese automotive industry had limited impact on its performance. The international joint ventures have shown stability due to the strong commitment of foreign partners to succeed at the Chinese market, not due to the reflection of the climate in which the JVCs were forced to operate. When it comes to the impact of the external factors on the performance of the industry, findings emphasize that the Chinese policy which restricted the entry of foreign investors with joint venture mode has positively affected the growth in the sector. This is especially significant if one has in mind that the alignment of the strategic goals of the JV partners, and the use of a wise production strategy and marketing channels, had an impact on the production growth, accompanied with the introduction of free technological zones, favorable FDI policy and reduction of political risks throughout the research period.