Strategic objectives, parent control and performance : a study of Sino-European international joint ventures

Yang, H

Abstract

The study explores the relationship between the strategic objectives of foreign
firms entering international joint ventures, foreign parent control, and joint venture
performance in the context of Sino-European IJVs. Using an integrative approach,
this study incorporates market power, transaction costs, and organisational learning
theories which provide a more comprehensive understanding of IJV strategic
objectives. The findings reveal that foreign partners consider market-developing and
knowledge-acquiring objectives as important and IJV performance in relation to these
objectives as satisfactory.
This study found different categories of objectives perform differently in IJVs.
The relationship between parent control and IJV overall performance received strong
support. Direct and indirect relationships between strategic objectives and IJV overall
performance are found. The empirical evidence confirms the significant moderating
effects of parent control on attainment of strategic objectives. The moderating effects
of parent control do not merely intensify or weaken the relationship between strategic
objectives and satisfaction in relation to these objectives, but also parent control has
different moderating effects in relation to different strategic objectives.
Research in international joint ventures is often associated with financial
problems because of geographical constraints. This study concentrated initially on a
web-based survey, using a mail survey to increase response rate as needed. The
majority of respondents (87%) completed the questionnaire online. This provides excellent evidence for researchers to make use of web-based surveys in future
international marketing studies.
Finally, China, as the biggest recipient of foreign direct investment in
developing countries, seems the logical choice for the analytical context. This
research thus contributes to the IJV literature on the Chinese experience.

Citation

Yang, H. Strategic objectives, parent control and performance : a study of Sino-European international joint ventures. (Thesis). University of Salford

• Thesis Type: Thesis
• Deposit Date: Oct 3, 2012
• Publicly Available Date: Oct 3, 2012
• Award Date: Jun 1, 2005