Case | HBS Case Collection | January 2007 (Revised July 2013)

To JV or Not To JV? That Is the Question (for XTech in China)

by Daniel J. Isenberg and Paul W. Marshall

Abstract

XTech, a leading manufacturer of metal parts for the telecommunications industry, is being pushed by its large equipment vendor customers to establish a manufacturing operation in China. CEO Reinhold Hesse is debating several options: establishing a joint venture, contracting with a local partner, or setting up a wholly owned enterprise. Hesse must prepare his recommendation to the management team, which includes owners Jim and Debby Sharpe.

Keywords: entrepreneurs; entrepreneurship; search; global ventures; private equity; negotiation; succession; Acquisitions; Private Equity; Negotiation; Partners and Partnerships; Expansion; Joint Ventures; Management Succession; Decision Choices and Conditions; Corporate Entrepreneurship; Financing and Loans; Global Strategy; Acquisition; Manufacturing Industry; Telecommunications Industry; China; United States;

Citation:

Isenberg, Daniel J., and Paul W. Marshall. "To JV or Not To JV? That Is the Question (for XTech in China)." Harvard Business School Case 807-118, January 2007. (Revised July 2013.)