“Focused joint ventures” in transforming economies

Executive Overview Executives who are intrigued by joint ventures in Eastern Europe can learn from the hard-won success of a small number of foreign/Chinese joint ventures in China. To date, most of such profitable businesses are “focused joint ventures.” Highly flexible, participative, democratic management is not the key. Instead, “focused joint ventures” have these characteristics: 1) highly prescribed operations, 2) narrow product line, 3) sustained commitment of partners, 4) top-down motivation of employees, 5) strict performance standards for local suppliers. It is these tightly managed organizations that are producing goods up to world-class standards while keeping cost in line. The “focused joint ventures” are setting a needed example of behavior modifications necessary to transform sheltered production into competitive production. Each “focused joint venture” is intentionally inflexible: it succeeds by promptly serving a clear need, and probably has a limited life span. However, adaptability can ...