Antecedents and effects of parent control in international joint ventures

Using a sample of 90 US-China manufacturing joint ventures, this study empi rically tested a grounded-theory model of the antecedents and the effects o f the structure of parent management control in international joint venture s. The results suggest that competitive and cooperative dynamics occur simu ltaneously between joint venture partners. On one hand, the relative bargai ning power between the partners, derived from the negotiation context and f rom contributing critical resources to the venture, respectively, is a dete rmining factor in management control; and the level of operational control exercised by a partner over the venture has a positive effect on the extent to which this partner's strategic objectives are achieved. On the other ha nd, the quality of the interpartner working relationship was found to have a strong, positive relationship with the achievement of strategic objective s for both partners.