Problems of Managing Joint Ventures in China's Interior: Evidence from Shaanxi‪.‬

For several decades foreign firms have been locating in China, often through joint ventures with indigenous firms and usually in the more developed coastal regions. Now, however, the vast resource-rich interior is beckoning, and the central government is encouraging investment there. Given the interior's poor infrastructure, less educated population, and scant exposure to market economy concepts, firms locating there--even through joint ventures--face many challenges. Fifty-four interviews with managers in 24 joint ventures in the interior Shaanxi province reveal the potential pitfalls as well as ways to increase the chances of a successful joint venture. Introduction