抄録
This article is a case study of Hisense Hitachi, which is a Sino-Japanese joint venture that produces central air conditioners. Before establishing the joint venture in 2003, both parties struggled to expand their sales in central air conditioning equipment. Hitachi had a good technology but it was not good at marketing its products in China. Hisense was good at marketing but the quality of its product was unstable. The two companies decided to create a joint venture to combine the advantages of both parties. The joint venture, Hisense Hitachi, introduced Hitachi’s product technology, quality standard, and manufacturing system. It has created a nationwide sales network consisted of licensed dealers and branch offices that support the dealers. So far the joint venture has been very successful, elevating its position in the central air conditioner market to the second largest manufacturer in China. Existing theories on multinational enterprises pointed out that the investor must have advantages over local competitors. Previous studies on Japanese multinationals focused on how their advantages had been transferred to their overseas subsidiaries. These studies ignore the possibility that their local partners may have advantages too. The case of Hisense Hitachi suggests that the advantages and capabilities of the local partner can be a key to the success of international investment.
