A Dual Parent Perspective on Control and Performance in International Joint Ventures: Lessons From a Developing Economy

Yadong Luo, Oded Shenkar and Mee-Kau Nyaw
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Yadong Luo: University of Miami
Oded Shenkar: Ohio State University
Mee-Kau Nyaw: Lingnan University

Journal of International Business Studies, 2001, vol. 32, issue 1, 58 pages

Abstract: This study compares the control-performance relationship for foreign versus local parents in international joint ventures in China. Transaction cost analysis is found more applicable to foreign than to Chinese parents. Both overall and specific controls are associated with performance for foreign parents, while only specific control is for Chinese parents. Under goal incongruity, Chinese parent control is associated with foreign parent dissatisfaction with venture performance, but not vice-versa. Having a majority stake improves performance from a foreign parent perspective, but not from that of the Chinese parent.© 2001 JIBS. Journal of International Business Studies (2001) 32, 41–58

Date: 2001
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