A mismatch of expectations and capabilities often cause the first challenges in a JV.

Summary: Both sides will face the challenge of implementing value-creation initiatives.

Foreign companies face the bigger challenge of selecting a group that can parachute into the newly formed JV with the appropriate mix of technical, business and China-savvy managers to accelerate knowledge transfer and operational improvements.

Without proper preparation and incentives, members of this team often see their current assignment as their "day job" and can lack sufficient focus to work with the JV partner.

On the Chinese side, there may be a limited number of managers with the requisite international experience to work effectively with the incoming partner. Such a mismatch of expectations and capabilities often cause the first challenges in the JV relationship.

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Contacts

• Yew-Poh Mak 
  Operational Transaction Services,
  Asia-Pacific
  +86 21 2228 3002

Download

•   Capital Agenda Insights, March 2011 as a printable document (4.4 MB PDF).