CHINA FORTUNE: Exploring Reasons for Failure in Joint Ventures - December 2005


Anita Tang believes the reason for joint-venture failure is that "Qiang Niu De Gua Bu Tian" - A melon forced off its vine is not sweet. 


First, the joint venture should be a voluntary cooperation by both partners; they should have a common business goal. Such a relationship should be built on mutual benefit in which both partners jointly work for the long-term success of the venture. Second, based on the shareholding structure and legal regulations, the duties and responsibilities of the partners are defined.  Only a joint venture based on such bases can sustain long-term development and bring profits to the joint-venture partners.


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