THE ANALYSIS OF FACTORS RELATED TO THE SUCCESS OF JOINT VENTURE PROJECTS BETWEEN CHINESE AND INDONESIAN ENTERPRISES IN REAL ESTATE (A CASE STUDY OF JV CO)

Abstract

This research is conducted to determine the factors related to the success of joint venture projects between Indonesian and Chinese Enterprises in Real Estate, and it is done by the case study of JV CO. After China entried into the WTO, the reform and opening up has entered a new development stage and China will open to the outside world in an all-round, multi-layered and wide-ranging way, and more and more foreign companies want to invest in China, of course including in real estate industry. This research will help JV CO know about its advantages in doing joint venture activities. Besides, Chinese government should also take this research as a reference to find out what JV CO’s successes are, and how JV CO can reach win-win situation with Chinese government. Qualitative research was used in this research. The data was collected by questionnaire. The employees who really focus on joint venture activities in JV CO Company and Ciputra Group are the respondents of this research. There are 24 respondents. Besides, the research is about foreign company invest in China, even though JV CO is joint venture company by Ciputra Group that is one of the biggest company in Indonesia, it is still a new comer for Chinese market and cannot represent all the foreign companies joint venture in China. Actually the researcher should get the data from different companies, because the result can be influenced by many factors, such as location, management system, objectives and so on, but by the limitation, the research just can be done among Ciputra and JV CO employees, and the result of this study maybe just applicable to JV CO. According to the results, comparing with Chinese domestic enterprises, the dominant factor related to the success of JV CO is its management advantages, which are its communication skills during joint venture activities, mutual respect in joint venture partnership, good employees welfare and incentive system. These advantages bring many high quality employees into the company. Maybe it is related to JV CO’s international background and its mother company Ciputra’s status in real estate industry —“Leading in Indonesia”. Based on the results, most of employees are satisfied with JV CO’s management during joint venture partnership and JV CO can earn good opportunity by entering into Chinese real estate market. The researcher recommends JV CO should keep going with its advantages: be able to respect in joint venture activities, good communication skills during joint venture partnership, good employees’ welfare and incentive system, and perfect them so that JV CO will be more successful in joint venture activities in the future.