Successful joint ventures in the heart of the dragon

The Open Door Policy in China (the People's Republic of China) since 1979 has primarily attracted the Overseas Chinese. Although this group has contributed to the remarkable economic development of the areas which neighbour Hong Kong and Taiwan, industrial modernization in China is contingent on the transfer and effective assimilation of leading-edge technologies from the West. World-class firms are being lured to Greater Shanghai, a coastal metropolis with a strong business tradition and a cosmopolitan past. Unfortunately, potential foreign investors are hindered by the scarcity of reliable information about the current Shanghai business environment. The authors used an interpretive research methodology to examine critically the experiences of the pioneering joint ventures in Shanghai. Effective technology transfer mechanisms and soft management skills, to develop relationships, motivate workers and bridge differences in cultures and systems, were found to be critical success factors. © 1995.