Purpose –This paper is to study the process of the negative effects of Sino-foreign joint ventures, hoping to find out an effective path in which local enterprises can avoid the risks in the utilization of foreign capital, and ultimately achieve independent innovation. Research design, data, and methodology –The outflow of assets, the loss of local brands and the "technology hollowing-out" problem brought by joint ventures is becoming more and more serious. Based on conflict analysis graph model, this paper takes Yuhuan joint venture as an example to identify the conflict problem in Sino-foreign joint ventures. Results –The results of the stability analysis show that establishing joint venture cannot really realize the introduction of technology because the technology is fully controlled by the foreign part. So when introducing foreign capital, local enterprises should participate in R&D and master the initiative. Conclusions – Local enterprises should pay attention to patent containment and technology blockade of multinationals. Domestic enterprises should try to protect state-owned assets and local brands in Sino-foreign joint ventures. Independent innovation is the most effective strategy for the development of enterprises in China.
Chen, J., Tao-Hsien Dolly King, & Wen, M. M. (2015). Do Joint Ventures and Strategic Alliances Create Value for Bondholders?. Journal of Banking & Finance, 58, 247-267.
Han, X. S., & Xu, H. Y. (2012). Research on Technology Transfer Conflict Based on Graph Model for Conflict Analysis. Science & Technology and Economy, 5, 72-76.
Johansson, T., & Jyrama, A. (2016). Network of Organizational Identities in the Formation of A Cultural Joint Venture: A Case Study of the Helsinki Music Centre. International Journal of Arts Management, 18, 67-69.
Li, Y. H. (2000). Thinking on the Mode Choice of Sino-Foreign Joint Venture - Analysis of the Disintegration of Nanjing A.O. Smith Company. Reform, 3, 111-118.
Li, Z. J., & Zhang, X. F. (2010). Cultural Differences, Organizational Cultural Differences and Firm Performance: An Empirical Study Based on Sino-Foreign Joint Ventures. Finance & Trade Economics, 9, 93-98.
Lin, L. D. (2014). Focusing on the effect of Multinationals M&A on the industry competitiveness of China. Economic Review, 5, 80-84.
Liu, S., Chen, Z. J., & Di Cai. (2014). The Dynamic Change of Control Relations under Equal Equity Shareholders - A Case Study Based on the Joint Venture of Hisense and Hitachi. China Industrial Economics, 6, 135-146.
Nguyen, H. L., Larimo, J., & Tahir, A. (2016). How do Ownership Control Position and National Culture Influence Conflict Resolution Strategies in International Joint Ventures?. International Business Review, 25, 559-568.
Piening, E. P., Salge, T. O., & Schäfer, S. (2016). Innovating Across Boundaries: A Portfolio Perspective on Innovation Partnerships of Multinational Corporations. Journal of World Business, 51, 474-485.
Tianjing Dai, & Guliang Tang. (2011). The Control of Trust and Trust in Control - A Case Study Based on Five Chinese and Foreign Joint Venture Automobile Manufacturing Companies. Management World, 10, 141-153.
Wang, J. Y., & Blomström, M. (1992). Foreign Investment and Technology Transfer: A Simple Model. European Economic Review, 36, 137-155.
Westman, C., & Thorgren, S. (2016). Partner Conflicts in International Joint Ventures: A Minority Owner Perspective. Journal of International Management, 22, 168-185.
Wu, Y. S., Ju, J. A., & Jiang, X. S. (2015). Coalition Analysis based on the Graph Model for Conflict Resolution. Systems Engineering, 2, 58-67.
Xing, F., & Zhang, J. H. (2009). Import of Foreign Technology Transfer on Indigenous R&D in China. Economic Research Journal, 6, 94-104.
Xu, Y., & Wang, H. (2005). An Empirical Study of Trans-corporation’s Key Point Control to Sino-foreign Joint Venture. Nankai Business Review, 6, 68-74.
Ye, J. A., & Wang, J. L. (2014). Effects of FDI on China’s Technological Innovation: An Empirical Test Based on 2002-2011 Panel Data of Jiangsu Province. Journal of International Trade, 1, 131-138.
Yu, Y. Z. (2012). Is There A “Threshold Condition” in FDI Technology Spillover?. Journal of Quantitative &Technical Economics, 8, 49-63.
Zhang, H. Y. (2008). The Impact of FDI on the Independent Innovation Capability of Chinese Home Manufacturing. Journal of International Trade, 1, 72-81.
Zhao, L. K., Yue, H., & Kun, J. (2014). Joint Venture Risk-taking and Cultural Values. Economic Research Journal, 1, 70-82.
Zhao, Z. Y. (2004). The Increase in Exclusively Foreign owned Investments in China: Reasons, Impacts, and Countermeasures. World Economics and Politics, 4, 68-72.