East meets East and East meets West: The case of Sino-Japanese and Sino-West joint ventures in China

This study tests the effects of cultural differences on the behaviour and performance of joint-ventures. We first study the relationship and predictions of two relevant theories, i.e., the theory about cultural diversity and that about cultural distance. After that, we apply the theories to study the behaviour and performance of Sino-Japanese and Sino-West joint ventures (JVs). Processing data from 2718 such JVs in different parts of China, we show evidence supporting our arguments. Our paper concludes with a discussion on the implications of the findings.