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Bartering technology for local resources in exogamic Sino‐foreign joint ventures
Author(s) -
Jolly Dominique R.
Publication year - 2004
Publication title -
randd management
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.253
H-Index - 102
eISSN - 1467-9310
pISSN - 0033-6807
DOI - 10.1111/j.1467-9310.2004.00348.x
Subject(s) - imitation , business , value (mathematics) , incentive , marketing , industrial organization , set (abstract data type) , barter , core (optical fiber) , joint (building) , commerce , economics , microeconomics , market economy , computer science , engineering , psychology , social psychology , telecommunications , architectural engineering , machine learning , programming language
Five hypotheses were formulated regarding the exogamic nature of Sino‐foreign joint ventures and two propositions regarding incentives for technology transfers and protection against imitation. Research relied on a questionnaire‐based investigation in 67 joint ventures and case studies in various industries. Three lessons were drawn. (1) Each partner contributes with a differentiated set of idiosyncratic and non‐substitutable set of resources; technology is the core contribution of foreign companies no matter which aspect is examined. There is an almost perfect symmetry between the pooled resources and the learning objectives of each partner. (2) Chinese respondents give a strong competitive value to technology transfers. (3) Beyond traditional technical and legal protection, foreign companies slow down imitation with three strategies: taking advantage of time lag; keeping the most creative value added stages at home; playing, not on the technology itself, but on inherent financial or commercial obstacles.