Joint venture: the strategic alliance operating management for the enterprise innovation system in China

The study of strategic alliances and joint ventures has been one of the major areas of business research in 1980s and 1990s and it seems that talking about this issue is out of date in this 'age of innovation capitalism and Made in China'. The foregoing studies focused on how to take joint venture as a mode of foreign entry for the industrialized countries. But for our china companies, when they want to invest direct overseas, the establishment and updating there innovation system are the main considerations. This article has compared the entry modes and operating management model between Nokia, Motorola and Ericsson entering into China Market and Haier and Capitel Companies' Foreign Investment Directly. This is an important choice for Chinese companies inforeign markets. The objective of this paper is to offer a feasible analysis framework for China Enterprises Innovation System International Strategic Alliance Operation Management. This Framework provides 1) a theoretical basis for systematically interrelating the literature into proposition, 2) propositions about which resolve the apparently contradictory arguments advanced to date. Specifically, the paper endeavors to give a reasonable strategic alliance management framework for Chinese enterprises, including: Proposing the virtual innovation cluster or networks to audit the alliance strategy design for Chinese enterprise; Explaining the alliance design flow and discusses an integrating management framework; Illustrating the feasibility of clustering 20 entry modes into the degree of control the mode provides the entrant and their devotes to enterprise innovation system; Proposing that the most appropriate (i.e., most efficient) entry-mode is a combination of venture capital mode and industrial capital mode, and the tradeoff between control and the cost of resource commitment is also important; Advancing testable propositions delimiting the circumstances under which each mode maximizes long-term efficiency.