Drivers and outcomes of parent company intervention in IJV management: a cross-cultural comparison

This study focused on an important issue in international joint venture (IJ V) management-the motivations for and outcomes of parent company interventi on into the affairs of the IJV, specifically in the form of control process es. The paper reports on IJVs between Japanese companies and firms from oth er Asian and Western national cultures. The study considered two forms of p arental control: direct, where the parent overtly dictates and meddles in I TV operations and decision-making, and indirect, which involves a more cons ultative relationship between the parent and IJV. Motivations for control i ncluded IJV experience, strategic importance, product similarity, and resou rce dependence. As an outcome of parent control of the IJV, the study looke d at conflict between partners and conflict between the IJV's managers and their parent company. Results suggested significant variance in control by national culture for the effects on control of IJV experience, strategic im portance, product similarity, and resource dependence. The effects of contr ol on conflict also varied by national culture. (C) 2001 Elsevier Science I nc. All rights reserved.