The Chinese Volvo Sino-Foreign Joint Ventures and Perceived Performance
Abstract: This dissertation describes and analyzes the perceived performance of Sino-foreign joint ventures. The dissertation is based on an in-depth qualitative longitudinal real time case study of the joint venture known as Jinan Hua Wo Truck Corporation (Hua Wo), between Volvo Trucks and China National Heavy Duty Truck Group Co. Ltd. in China. The purpose of the dissertation is to contribute to the understanding of Sino-foreign perceived performance by suggesting an elaborated model, which captures situated and dynamic features. Perceived performance is defined as the joint venture executives’ assessment of strategic goal achievement and overall satisfaction.Findings from the study of the Hua Wo joint venture indicate that what determines perceived performance is the outcome of activities initiated in order to achieve or to facilitate goals. The dissertation presents an analytical model of Sino-foreign joint venture perceived performance which comprises the four concepts: goals, stakeholder relations, political influence and control. The conclusion of the dissertation is that in order to understand what decides perceived performance, it is necessary to assess system size, in other words, the number of stakeholders able to influence goal achievement, and also the intended duration of the activities. It is proposed that the configuration of the suggested model of perceived performance will be dependent upon these two dimensions. For activities taking place in a restricted system over a restricted time period, perceived performance depends primarily on the goals of the activity. The perceived performance of activities of a restricted system carried out over an extended period of time is more influenced by control. On the other hand activities carried out in an extended system over a restricted period of time are mainly determined by stakeholder relations for perceived performance, whereas activities which take place in an extended system for an extended time period are vulnerable to political influence.
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