Perceptions of MNC management: Local parent sensemaking in international joint venture process

The article focuses on the way in which multinational corporations (MNCs) and local parent firms interact in the construction and operation of international joint ventures (IJVs). It seeks to contribute to the theory of IJV process in two ways. First, it constructs a preliminary integrative theoretical framework, which draws attention to the roles of initial venture conditions, of political, learning and relationship processes and parental perceptions of efficiency and equity. Second, it infers theoretical lessons from a case study of a German-Czech IJV. The empirical findings highlight the role of critical events that stimulate sensemaking processes, which in turn politicise the IJV and create different dynamic patterns.