Contractual Joint Ventures in China: Formation, Evolution and Operation


Yue Wang
Australian School of Business, University of New South Wales, Sydney, Australia

Series: Business, Technology and Finance

The book fills a gap in the existing literature on foreign direct investment (FDI) in China. Contractual Joint Ventures (CJVs) is the least understood form of FDI prescribed by Chinese government. Compared to a substantial research on Equity Joint Ventures (EJVs) and Wholly Foreign Owned Enterprises (WFOEs), CJVs have been neglected and simply treated as a variation on EJVs. This pioneering study reveals the nature of CJVs as a type of non-equity based relational contracting arrangement, possessing features that lie between their market and hierarchy alternatives. Drawing upon contemporary theories in international business and based on the author’s rich survey data, the book offers important insight to the choice of CJVs over alternative contractual arrangements from both foreign and Chinese firms perspectives. The book also shows why CJVs remained an efficient governance structure over time in a changing institutional environment and reveals how the dynamic elements of trust, learning and dispute resolution approaches shaped the management of CJV relational contracts. In a broader scope, the book contributes both to the theory and the practice of international business organization by providing a finely tuned analysis of an under-researched non-equity cooperative alliance in international business.



Table of Contents


Chapter 1. Introduction: Contractual Joint Ventures in China and Guangdong

Chapter 2. Theoretical foundations

Chapter 3. FDI in China and Hong Kong’s Investment in Guangdong

Chapter 4. Conceptual Framework

Chapter 5. Methodology and sample Firms

Chapter 6. The contracting Choice, Transaction-specific features, and Ownership Advantages of Contractual Joint Ventures

Chapter 7. The Characters of Contractual Joint Venture Partnerships

Chapter 8. The Managerial Behaviour and Performance of Contractual Joint Ventures

Chapter 9. Conclusions




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