SME Foreign Direct Investment: An Examination of the Joint Venture Experiences of German and U.K. Small and Medium Sized Firms in China

Joint Ventures (JVs) have become popular vehicles for foreign market servicing, but few studies have focused on the joint venturing activities of Small and Medium-sized Enterprises (SMEs). This article examines the activities of 9 U.K. and 12 German SME joint ventures in China. Based on a questionnaire survey and in-depth case interviews, it reveals that the JVs, though successful, are not without their problems and the experiences are similar to those of large multi-national enterprises. As the key to success is the choice of the joint venture partner, assistance is required to help SMEs identify and select appropriate partners.