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Foreign parent control mechanisms and international joint venture performance

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  • Byung Il Park
  • Keith W. Glaister

Abstract

Despite the strategic importance of foreign parent control mechanisms they have received scant attention in the discussion of international joint venture performance. This paper analyses the relationship between control mechanisms and efficiency as a possible proxy for performance measurement and reports two key findings. First, international joint ventures perform better when foreign parents possess majority equity ownership. Second, foreign parents' participation and support based on indirect control promotes performance compared with the case where foreign parents exercise direct and active control over the joint venture.

Suggested Citation

  • Byung Il Park & Keith W. Glaister, 2009. "Foreign parent control mechanisms and international joint venture performance," International Journal of Human Rights and Constitutional Studies, Inderscience Enterprises Ltd, vol. 1(2), pages 113-131.
    • Handle: RePEc:ids:ijhrcs:v:1:y:2009:i:2:p:113-131
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    Cited by:

    1. Park, Byung Il & Choi, Jiyul, 2014. "Control mechanisms of MNEs and absorption of foreign technology in cross-border acquisitions," International Business Review, Elsevier, vol. 23(1), pages 130-144.
    2. Park, Byung Il, 2011. "Knowledge transfer capacity of multinational enterprises and technology acquisition in international joint ventures," International Business Review, Elsevier, vol. 20(1), pages 75-87, February.

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