Factors Affecting Malaysia–China Construction Joint Venture Projects
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Date
2012-04
Authors
Mo, Xuan
Journal Title
Journal ISSN
Volume Title
Publisher
Universiti Sains Malaysia
Abstract
With the world’s economic globalization growing at a rapid pace over the past years, the international joint ventures (IJVs) have been popular increasingly in a large number of countries, as well as many industries. For the purposes of sharing risk, complementing or integrating resources, authority regulatory etc., the IJVs have been widely utilized as a competitive form by the multinational enterprises and other organization entering into global cooperation. Therefore IJV has long been drawing attention by so many scholars, a few of whom found that more than half of the past IJVs performed unsatisfactorily or poorly, even failed. Differentiating from the majority of past literatures that focused on the IJVs between developed and developing economies, this study conducts the research on the integrated IJVs in Malaysia’s construction industry created by 2 emerging economies, Malaysia and China. The negative factors that influence the performance of IJVs are classified into 4 groups: institutional, structural, partner-related and project-specific each comprising a few sub-factors. From the perspective of project management, the research aims to identify the factors that have negative effects on the performance of Malaysia-China construction joint venture (MCCJV) projects. The research deploys both quantitative and qualitative methods. The questionnaire survey using 5-point Likert scale is conducted among the population comprising managerial personnel of both 29 Malaysia’s and 12 China’s contractors across the nation, with the data of 46 response questionnaires processed by SPSS (version 17.0). The tests of descriptive statistic, relative importance index and paired-samples are deployed. The qualitative study is by means of case studies that examine 2 projects both involving MCCJVs. Secondary data has been gained from multiple channels such as literatures, publication, archives, news and so on. It is found that the MCCJV projects are negatively influenced mainly by the political and macroeconomic condition, culture distance, incomplete JV contract, inappropriate structure, experience shortage, poor inter-partner relation, financial and human resources management, incompatibility etc. Additionally the Chinese partners’ status as strategic ally was downgraded, instead performing like their partners’ sub-contractors. Accordingly, a number of conclusions and recommendations are presented, aiming to improve the performance of MCCJVs in the future. At last are the research’s limitation and suggestion for future study.
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Keywords
Factors affecting Malaysia–China , construction joint venture projects