Author(s)

Ruiyang Wei

Corresponding Author

Ruiyang Wei

Abstract

The idea of ‘globalization’ has attracted increasing attention among companies and investors. As one of the most common ways available for companies to enter the foreign markets, joint ventures can provide great help in terms of resource sharing, complementary advantages, reasonable and legal reduction of financial expenditures and operating cost. However, the possible negative outcomes such as serious cross-cultural conflicts may greatly reduce the effectiveness and advantages of joint ventures. Adaptive Co-Management (ACM) theory may help dealing with problems related to cross-cultural conflicts and thus leads to better operation. This essay focuses on studying the effectiveness of applying ACM to cross-culture conflict management. An analysis on the culture and conflict management methods of FAW-Volkswagen will be taken as the object for this research. To make the study more concrete, the cases of Audi’s sales division are introduced to represent FAW-Volkswagen’s culture management policies. A comparison between the methods FAW-Volkswagen have taken and ACM theory is taken to consider their similarity and seek for the possibility of further application of the theory within FAW-Volkswagen. The data and cases displayed in the paper are sourced from the company’s official website and former researches.

Keywords

Adaptive Co-Management (ACM); conflict; FAW-Volkswagen; China