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Autonomy and Effectiveness of Equity International Joint Ventures (EIJVs): An Analysis based on EIJVs in Hungary and Britain

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  • William Newburry
  • Yoram Zeira

Abstract

The paper utilizes data collected from 34 equity international joint ventures (EIJVs) located in Hungary and 49 EIJVs located in Britain to examine the effects of autonomy on EIJV effectiveness. Study results suggest that for the total sample, permitting an EIJV to develop local HRM policies and to implement business plans independently contribute to EIJV effectiveness. Additionally, there is a positive correlation between EIJV age and effectiveness. When the samples are broken up, the results are consistent except that developing local HRM policies is not a significant factor with respect to EIJV effectiveness in Hungary. The paper contributes to the literature by demonstrating that autonomy is a multidimensional construct and by providing initial support for the development of a theory relating EIJV autonomy to effectiveness based on a hierarchy of autonomy measures. The paper also suggests a model of relative recommended autonomy levels for different EIJV activities.

Suggested Citation

  • William Newburry & Yoram Zeira, 1999. "Autonomy and Effectiveness of Equity International Joint Ventures (EIJVs): An Analysis based on EIJVs in Hungary and Britain," Journal of Management Studies, Wiley Blackwell, vol. 36(2), pages 263-285, March.
    • Handle: RePEc:bla:jomstd:v:36:y:1999:i:2:p:263-285
    DOI: 10.1111/1467-6486.00136
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    Cited by:

    1. Alvarado-Vargas, Marcelo J. & Hermans, Michel & Newburry, William, 2020. "What’s in it for me? Local employees’ anticipated career opportunities derived from firm internationalization," Journal of Business Research, Elsevier, vol. 117(C), pages 201-211.
    2. Lazarova, Mila & Peretz, Hilla & Fried, Yitzhak, 2017. "Locals know best? Subsidiary HR autonomy and subsidiary performance," Journal of World Business, Elsevier, vol. 52(1), pages 83-96.
    3. Newburry, William & Zeira, Yoram & Yeheskel, Orly, 2003. "Autonomy and effectiveness of equity international joint ventures (IJVs) in China," International Business Review, Elsevier, vol. 12(4), pages 395-419, August.
    4. Glaister, Keith W. & Husan, Rumy & Buckley, Peter J., 2003. "Learning to manage international joint ventures," International Business Review, Elsevier, vol. 12(1), pages 83-108, February.
    5. Wu Zhan & Roger (Rongxin) Chen, 2013. "Dynamic capability and IJV performance: The effect of exploitation and exploration capabilities," Asia Pacific Journal of Management, Springer, vol. 30(2), pages 601-632, June.
    6. Ulrike Mayrhofer, 2002. "Environnement national et stratégies de rapprochement: une analyse des entreprises françaises et allemandes," Revue Finance Contrôle Stratégie, revues.org, vol. 5(2), pages 61-84, June.
    7. Mirchandani, Dinesh A. & Lederer, Albert L., 2008. "The impact of autonomy on information systems planning effectiveness," Omega, Elsevier, vol. 36(5), pages 789-807, October.
    8. López-Navarro, Miguel Á. & Camisón-Zornoza, César, 2003. "The effect of group composition and autonomy on the performance of joint ventures (JVs): an analysis based on Spanish export JVs," International Business Review, Elsevier, vol. 12(1), pages 17-39, February.
    9. Taco H. Reus & Daniel Rottig, 2009. "Meta-analyses of International Joint Venture Performance Determinants," Management International Review, Springer, vol. 49(5), pages 607-640, October.

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