An analysis of strategic determinants, learning and decision-making in Sino-British joint ventures

This paper examines how partners' strategic objectives, inputs and competencies affect the learning they achieve in joint ventures and their ability to influence decision-making in such ventures. Quantitative and qualitative research in 20 Sino-British joint ventures permits an investigation of these factors for both British and Chinese joint venture partners. Findings indicate that the transfer by British partners of technology and managerial expertise to joint ventures enhances their ability to achieve their strategic objectives by influencing decisions in such ventures. The learning achieved by British partners depends on their commitment of strategic inputs to joint ventures and is therefore associated with their influence. The case of Chinese partners is different, because they look to learn from the knowledge and resource inputs provided by the British partners. They therefore rely more on legal ownership rights to retain an influence over joint venture decision-making. The achievement of Chinese partners' strategic objectives depends more critically on the quality of the partnership itself.