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 (IJV) management — the motivations for and outcomes of parent company intervention into the affairs of the IJV, specifically in the form of control processes. The paper reports on IJVs between Japanese companies and firms from other Asian and Western national cultures. The study considered two forms of parental control: direct, where the parent overtly dictates and meddles in IJV operations and decision-making, and indirect, which involves a more consultative relationship between the parent and IJV. Motivations for control included IJV experience, strategic importance, product similarity, and resource dependence. As an outcome of parent control of the IJV, the study looked 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 importance, product similarity, and resource dependence. The effects of control on conflict also varied by national culture.