Autonomy and Effectiveness of Equity International Joint Ventures (EIJVs): An Analysis based on EIJVs in Hungary and Britain

William Newburry and Yoram Zeira

Journal of Management Studies, 1999, vol. 36, issue 2, 263-285

Abstract: The paper utilizes data collected from 34 equity international joint ventures (EIJVs) located in Hungary and 49 EIJVs located in Britain to examine the effects of autonomy on EIJV effectiveness. Study results suggest that for the total sample, permitting an EIJV to develop local HRM policies and to implement business plans independently contribute to EIJV effectiveness. Additionally, there is a positive correlation between EIJV age and effectiveness. When the samples are broken up, the results are consistent except that developing local HRM policies is not a significant factor with respect to EIJV effectiveness in Hungary. The paper contributes to the literature by demonstrating that autonomy is a multidimensional construct and by providing initial support for the development of a theory relating EIJV autonomy to effectiveness based on a hierarchy of autonomy measures. The paper also suggests a model of relative recommended autonomy levels for different EIJV activities.

Date: 1999
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