Competition and Cooperation among Asian Enterprises in China
This paper preliminarily shows that the termination rate of Japan-Taiwan JVs in China is not high compared to average termination rate for overall Japanese investments in China. In terms of local access, JVs with Taiwanese companies improve local access for Japanese partners by making it easier (i)to access Taiwanese affiliates with a large conomic presence in China, (ii) to smooth entry to the local market by utilizing distribution networks that Taiwanese parties possess in China, and (iii) to get local information from Taiwanese partners whose language and culture are similar to those of China. In addition, it is suggested that organizational costs are generally decreasedbecause of the mutual trust built by the long history of collaboration between Japanese and Taiwanese partners. Finally, the theoretical implications and several remaining points are mentioned with reference to current developments in JVs between Japanese and Taiwanese companies in China.