A dual parent perspective on control and performance in international joint ventures: Lessons from a developing economy

This study compares the control performance relationship for foreign versus local parents in international joint ventures in China. Transaction cost a nalysis is found more applicable to foreign than to Chinese parents. Both o verall and specific controls are associated with performance for foreign pa rents, while only specific control is for Chinese parents. Under goal incon gruity, Chinese parent control is associated with foreign parent dissatisfa ction 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.