EconPapers    
Economics at your fingertips  
 

Host-country policies and MNE management control in IJVs: Evidence from China

Dong Chen, Yongsun Paik and Seung Ho Park
Additional contact information
Dong Chen: Department of Management, College of Business Administration, Loyola Marymount University, Los Angeles, USA
Yongsun Paik: Department of Management, College of Business Administration, Loyola Marymount University, Los Angeles, USA

Journal of International Business Studies, 2010, vol. 41, issue 3, 526-537

Abstract: In international joint ventures (IJVs), partner firms exert three types of management control: output, process, and social. Since management control critically influences IJV success, it is essential to understand what factors drive the development of the control system. Prior studies have focused mainly on IJVs’ internal conditions, and have largely neglected external institutional influences on IJV control. In this study we explore how host-country policies affect MNE partners’ control over their IJVs. Using a sample of IJVs in China, we find that MNE partners tend to exercise less output and process control when minority equity restriction is present, greater process control when they receive government incentives, and less social control when they are required to partner with state-owned enterprises. In contrast, the results of a post hoc analysis show that local partners’ control activities are not significantly influenced by these policies. Our findings provide new insights into IJV management by demonstrating the impacts of regulatory institutions on partners’ control activities.

Date: 2010
References: Add references at CitEc
Citations: View citations in EconPapers (8) Track citations by RSS feed

Downloads: (external link)
http://www.palgrave-journals.com/jibs/journal/v41/n3/pdf/jibs200997a.pdf Link to full text PDF (application/pdf)
http://www.palgrave-journals.com/jibs/journal/v41/n3/full/jibs200997a.html Link to full text HTML (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pal:jintbs:v:41:y:2010:i:3:p:526-537

Ordering information: This journal article can be ordered from
http://www.springer. ... nt/journal/41267/PS2

Access Statistics for this article

Journal of International Business Studies is currently edited by John Cantwell

More articles in Journal of International Business Studies from Palgrave Macmillan, Academy of International Business
Bibliographic data for series maintained by Sonal Shukla ().

 
Page updated 2019-07-15
Handle: RePEc:pal:jintbs:v:41:y:2010:i:3:p:526-537