International Joint Venture (IJV) Control Design: A Case Study of an Emerging Market IJV

This study aims to explore the various factors that influence the international joint venture (IJV) parent firms to use a specific control mechanism in an emerging market (EM). The study adopted a single case study design involving an IJV between a Nigerian firm as the local partner and a Chinese firm as the foreign partner. Data was collected through twenty semi structured interviews from both the parent firms and the IJV; and complemented by observations of the IJV activities, relevant information from newspapers; magazines; company brochures and newsletters; and website of the parent firms, IJV and the government regulating body. The study revealed that the design of formal and social control is influenced by a range of factors identified in the literature. This includes resource contribution and bargaining power, previous experience of the IJV managers, knowledge transfer, trust-building, environmental uncertainty, and institutional forces. In contrast to findings from existing studies, this study also reveals that a combination of factors can influence the use of a particular control mechanism. By examining the types of control exercised by each partner and the antecedent of each control type, this study complements prior research by incorporating insights from transaction cost theory, resource dependency theory, social exchange theory, institutional theory and organisational lerning perspective to provide a more integrative explanation of IJV control design. Specifically, it explains how one partner develops certain types of formal and social control according to its individual resource contribution and dependency and can adjust controls to achieve its various objectives.

Grantor dc:publisher.institution

University of Bradford

Year dc:date.issued

2019

Author dc:creator

• Ekpo, Itoro U.

Advisors dc:contributor.advisor

• Wang, Chengang
• Owens, Martin D.
• Chu, Irene

• International Joint Venture (IJV)
• Control mechanism
• Formal control
• Social control
• Foreign partner
• Local partner
• Emerging market

Statement dc:rights

• <a rel="license" href="http://creativecommons.org/licenses/by-nc-nd/3.0/"><img alt="Creative Commons License" style="border-width:0" src="http://i.creativecommons.org/l/by-nc-nd/3.0/88x31.png" /></a><br />The University of Bradford theses are licenced under a <a rel="license" href="http://creativecommons.org/licenses/by-nc-nd/3.0/">Creative Commons Licence</a>.

Language dc:language.iso

en

Handle dc:identifier.uri

http://hdl.handle.net/10454/18776

OAI identifier oai:identifier

oai:bradscholars.brad.ac.uk:10454/18776