The best practices in the formation phase of Sino-Finnish joint ventures in China: For Finnish software companies
Lukkarinen, Vilma (2015-09-22)
The best practices in the formation phase of Sino-Finnish joint ventures in China: For Finnish software companies
Lukkarinen, Vilma
(22.09.2015)
Julkaisun pysyvä osoite on:
https://urn.fi/URN:NBN:fi-fe2015092213737
https://urn.fi/URN:NBN:fi-fe2015092213737
Kuvaus
siirretty Doriasta
Tiivistelmä
This study discusses the formation phase of Chinese-Finnish joint ventures in China. The purpose
of this thesis is to create best practices for Finnish software companies in forming a joint venture
with a local Chinese company in China. Therefore, the main research question, in what are the best
practices for forming Sino-Finnish joint ventures in China for Finnish software firms, is examined
through four different themes within the joint venture formation phase; the motives, the partner se-
lection, the choice of a joint venture type and joint venture negotiations.
The theoretical background of the study consists of literature relating to the establishment process
of Sino-Western joint ventures in China. The empirical research conducted for this study is based
on the expert interviews. The empirical data was gathered via nine semi-structured interviews with
both Chinese and Finnish experts in software and technology industry, who have experience or
knowledge in establishing Sino-Finnish joint ventures in China. Thematic analysis was used to cat-
egorize and interpret the interview data. In addition, a thematic network was built to act as a basis of
the analysis.
According to the main findings, the main motives for Finnish software companies to establish a
joint venture in China are lack of skills or experience, little resources to enter on their own, and
China’s large market. The main motives for Chinese companies are to gain new technology or man-
agerial skills, and expand internationally. The intellectual property rights (IPR) have recently im-
proved a lot in China, but the Finnish companies’ knowledge on IPR is inadequate. The Finnish
software companies should conduct a market and industry research in order to understand their po-
sition in the market and to find a suitable location and potential joint venture partners. It is essential
to define partner selection criteria and partner attributes. In addition, it is important to build the joint
venture around complementary motives and a win-win situation between the joint venture partners.
The Finnish companies should be prepared that the joint venture negotiations will be challenging
and they will take a long time. The challenges can be overcome by gaining understanding about the
Chinese culture and business environment.
The findings of this study enhance understanding of the joint venture formation phase in China.
This study provides guidelines for Finnish software companies to establish a joint venture in China.
In addition, this study brings new insights to the Sino-Western joint venture literature with its soft-
ware industry context. Future research is, however, necessary in order to gain an understanding of
the advantages and disadvantages of a joint venture as an entry mode into China for Finnish soft-
ware companies
of this thesis is to create best practices for Finnish software companies in forming a joint venture
with a local Chinese company in China. Therefore, the main research question, in what are the best
practices for forming Sino-Finnish joint ventures in China for Finnish software firms, is examined
through four different themes within the joint venture formation phase; the motives, the partner se-
lection, the choice of a joint venture type and joint venture negotiations.
The theoretical background of the study consists of literature relating to the establishment process
of Sino-Western joint ventures in China. The empirical research conducted for this study is based
on the expert interviews. The empirical data was gathered via nine semi-structured interviews with
both Chinese and Finnish experts in software and technology industry, who have experience or
knowledge in establishing Sino-Finnish joint ventures in China. Thematic analysis was used to cat-
egorize and interpret the interview data. In addition, a thematic network was built to act as a basis of
the analysis.
According to the main findings, the main motives for Finnish software companies to establish a
joint venture in China are lack of skills or experience, little resources to enter on their own, and
China’s large market. The main motives for Chinese companies are to gain new technology or man-
agerial skills, and expand internationally. The intellectual property rights (IPR) have recently im-
proved a lot in China, but the Finnish companies’ knowledge on IPR is inadequate. The Finnish
software companies should conduct a market and industry research in order to understand their po-
sition in the market and to find a suitable location and potential joint venture partners. It is essential
to define partner selection criteria and partner attributes. In addition, it is important to build the joint
venture around complementary motives and a win-win situation between the joint venture partners.
The Finnish companies should be prepared that the joint venture negotiations will be challenging
and they will take a long time. The challenges can be overcome by gaining understanding about the
Chinese culture and business environment.
The findings of this study enhance understanding of the joint venture formation phase in China.
This study provides guidelines for Finnish software companies to establish a joint venture in China.
In addition, this study brings new insights to the Sino-Western joint venture literature with its soft-
ware industry context. Future research is, however, necessary in order to gain an understanding of
the advantages and disadvantages of a joint venture as an entry mode into China for Finnish soft-
ware companies