Local Responsiveness of German Firms in International Joint Ventures in the PRC

Whereas research has been carried out on multinational enterprises’ (MNEs) attempts to balance global integration and local responsiveness, there has been hardly any research into the degree to which foreign firms respond to differences that exist between themselves and their local joint venture (JV) partners in host countries. This chapter discusses MNEs’ responsiveness to inter-firm differences in IJVs as a special case of MNEs’ responsiveness to differences that exist between home and host country. We also highlight the role of perceptions for (empirical) research into firms’ decisions about the degree of responsiveness. Based on empirical data gathered by means of a questionnaire survey among 76 managers representing German partner firms of German-Chinese IJVs in the Peoples’ Republic of China (PRC), we provide some empirical evidence for the importance of individuals’ perceptions of responsiveness. A first finding of this study is that MNEs’ responsiveness in the specific context of international joint ventures warrants further scholarly attention and is of high practical relevance for firms interested in improving the management of their IJV. A second result of this chapter is that perceptions need to be taken into account when empirically studying the degree of local responsiveness of MNEs.