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This paper attempts to study Hong Kong-Japanese joint ventures from the perspectives of firm-specific advantages provided by both partners. The analysis focuses on the local partner's perspective of establishing international joint ventures (IJVs) with a Japanese multinational retailer. First, the background of the local partner, especially the company’s organizational restructuring immediately before the formation of the IJVs is examined. Second, the development and consolidation of the IJVs between the two partners by a series of IJV activities in Hong Kong, Asia, and China is described. Third, the motives behind both partners to establish the IJVs are examined. Finally, an evaluation of the IJVs of whether the IJVs have fulfilled the local partner’s motives is conducted. It is found that the IJVs have provided an opportunity for the local partner to overcome the increasing Japanese competition in the Hong Kong retail sector since the mid-1980s. Nevertheless, the local partner needs to overcome many management problems resu1ted from the IJVs partnership which may have hindered the local partner to achieve its objectives in the IJVs.


HKIBS Working Paper Series 005-967

Recommended Citation

Wong, M. M. L. (1996). The motives of Hong Kong-Japanese international joint ventures (HKIBS Working Paper Series 005-967). Retrieved from Lingnan University website:

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