EQUITY OWNERSHIP P A TTERNS AND IMP ACT ON OPERATIONS: EVIDENCE FROM U.S. FIRMS IN CHINA
This study examines how variations in equity ownership among U.S. firms in China translate into actual organizational practices and experiences. Four levels of equity ownership—minority, equal, majority, an resource management. There is no clear cut advantage for one level of equity ownership over a...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
People & Global Business Association (P&GBA)
2002-09-01
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| Series: | Global Business and Finance Review |
| Subjects: | |
| Online Access: | http://www.gbfrjournal.org/pds/journal/thesis/20150624163803-ONWFU.pdf |
| Summary: | This study examines how variations in equity ownership among U.S. firms in China translate into actual organizational practices and experiences. Four levels of equity ownership—minority, equal, majority, an resource management. There is no clear cut advantage for one level of equity ownership over another. On some issues, wholly owned firms appear to enjoy certain freedoms and advantages while on other issues, there are benefits to being a minority or equal partner, or a majority owner in a joint venture. Majority and wholly owned ventures are able to introduce distinct human resource practices in their Chinese operations but are less likely to develop good relationships with the Chinese government and bureaucracy. Joint ventures are more likely to exhibit patterns typical of Chinese enterprises and less able to resist meddling by government authorities. Consequently, firms contemplating entry into China would have to examine their own unique circumstance and industry specific factors to determine whether they should form a minority, equal, majority or wholly owned enterprise. |
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| ISSN: | 1088-6931 2384-1648 |