Differences in Partners’ Perception and the Performance of German-Chinese Joint Ventures

Abstract

This study discusses the role of differences in individuals’ perception for research in international management in general, and then explores the extent to which partner firm representatives of German-Chinese Joint Ventures (GCJVs) differ in their perception of various characteristics of their co-operation. In a second step the article suggests how differences in partners’ perceptions of key variables in the management of International Joint Ventures (IJVs) are associated with the perceived performance of such ventures. Using empirical data gathered from 38 General Managers and senior managers representing both sides of 19 GCJVs in the People’s Republic of China (PRC), asymmetries in partners’ perceptions and their association with the perceived performance of the IJV are explored empirically. The results show interesting differences in perception between the German and Chinese partners, and some significant relationships between the differences in perceptions and IJV performance.

The key results of the paper are that (1) there are considerable differences in the perceptions of managers representing the different sides of a JV, and (2) that these differences are related to differences in the perception of IJV performance. The paper contributes to research and practice by identifying and providing first empirical data on the magnitude of perceptual differences in IJVs and their potential relevance for the performance of IJVs.