Corporate entrepreneurship of IJVs in China

Abstract

Purpose

The purpose of this paper is to examine if corporate entrepreneurship in terms of innovation and proactivity that has been developed in the international joint ventures (IJVs) in the Chinese cultures.

Design/methodology/approach

A structured questionnaire with a systematic sampling approach was adopted and sent to 800 firms (400 from the manufacturing industry and 400 from the servicing industry) in Beijing. Descriptive statistics, correlation analyses and stepwise multiple regression were used.

Findings

Corporate entrepreneurship exists in the IJVs, yet the Western‐Chinese JVs are more innovative and proactive. It is found that organisational variables such as flexibility, operational delegation, control system and the implementation of differentiation or growth strategy are significantly related to both innovation and proactivity. However, organisational variables on strategic delegation and risk‐taking culture are significantly related to proactivity only. On the other hand, the implementation of cost leadership is found to be unrelated to either innovation or proactivity.

Research limitations/implications

Since the sample was drawn from IJVs in Beijing, comparative studies could be done on IJVs across different cities in China.

Practical implications

The significant results provide insights for studying the cultural context of China's IJVs.

Social implications

Asian‐Chinese JVs have to improve corporate entrepreneurship posture in their management. This will attract professionals with international experience from different parts of the world to work in China's IJVs.

Originality/value

The entrepreneurial posture of an IJV can be measured in terms of its ability on innovation and proactivity. It provides benefits to both foreign and local partners in terms of local knowledge, access to market, and cost consideration as well as technological and skills transfers.

Citation

Lau, T., Chan, K.F., Tai, S.H.C. and Ng, D.K.C. (2010), "Corporate entrepreneurship of IJVs in China", Management Research Review, Vol. 33 No. 1, pp. 6-22. https://doi.org/10.1108/01409171011011535