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Bargaining Power, Management Control, and Performance in U.S.-China Joint Ventures: A Comparative Case Study

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International Joint Ventures: Economic and Organizational Perspectives

Abstract

This article reports a comparative case study of four international joint ventures created between the United States and the People’s Republic of China. The findings of this study suggest that the relative bargaining power of potential joint-venture partners significantly contributes to the structural configuration of the joint venture with respect to parent control, and that the structure of management control exercised by the parents affects venture performance. Several informal control mechanisms interacting with formal control structure and influencing performance are identified. The article also investigates the dynamic evolution of joint ventures over time as a result of changes in the environment, adjustments in the parents’ strategies, mutual learning between the partners, and the maturity of the joint venture. Finally, an integrative model is presented and several propositions for future research are offered.

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Author information

Authors and Affiliations

  1. Organizational Behavior Department, School of Management, Boston University, 621 Commonwealth Avenue, Boston, MA, 02215, USA

    Aimin Yan

  2. Department of Management and Organization, The Smeal College of Business Administration, The Pennsylvania State University, 408 Beam Business Administration Building, University Park, PA, 16802, USA

    Barbara Gray

Authors
  1. Aimin Yan
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  2. Barbara Gray
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Editor information

Editors and Affiliations

  1. Center for Research in Conflict and Negotiation, The Pennsylvania State University, University Park, Pennsylvania, USA

    Kalyan Chatterjee  & Barbara Gray  & 

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Yan, A., Gray, B. (1995). Bargaining Power, Management Control, and Performance in U.S.-China Joint Ventures: A Comparative Case Study. In: Chatterjee, K., Gray, B. (eds) International Joint Ventures: Economic and Organizational Perspectives. Springer, Dordrecht. https://doi.org/10.1007/978-94-017-1944-5_7

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  • DOI: https://doi.org/10.1007/978-94-017-1944-5_7

  • Publisher Name: Springer, Dordrecht

  • Print ISBN: 978-94-017-1946-9

  • Online ISBN: 978-94-017-1944-5

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