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Volkswagen struggles to control Chinese joint vetures

By: HOON-HALBEUR, Sing Keow.
Material type: materialTypeLabelArticlePublisher: 2000-2001Subject(s): Joint Ventures | Organizational Conflict | China | Human Relations | International BusinessesHuman Resource Management International Digest 8, 4, p. 5-7Abstract: This article examines the diffculties in operating a joint business venture in China. Drawing upon case studies involving Volkswagen and American Motor Corp. The piece details an essential lack if cultural understanding on both sides - leading to nistrust and lack of allegiance. Managers struggled to come to terms with the prevailing Communist Party system, which appeared to directly contrast with a Western target-driven philosophy. For a joint venture to succeed it needs to be seen as a distinct entity. Essentially, the key to success is to manage relationship sucessfully. Trying to simply make a quick buck oversees is not the answer
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Periódico Biblioteca Graciliano Ramos
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This article examines the diffculties in operating a joint business venture in China. Drawing upon case studies involving Volkswagen and American Motor Corp. The piece details an essential lack if cultural understanding on both sides - leading to nistrust and lack of allegiance. Managers struggled to come to terms with the prevailing Communist Party system, which appeared to directly contrast with a Western target-driven philosophy. For a joint venture to succeed it needs to be seen as a distinct entity. Essentially, the key to success is to manage relationship sucessfully. Trying to simply make a quick buck oversees is not the answer

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