Title: Foreign parent control mechanisms and international joint venture performance

Authors: Byung Il Park, Keith W. Glaister

Addresses: Kyungsung University, College of Commerce and Economics, 314-79, Daeyeon-dong, Nam-gu, Pusan, 608-736 South Korea. ' Management School, University of Sheffield, Sheffield, South Yorkshire, S1 4DT UK

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.

Keywords: foreign parent control; joint venture performance; international joint ventures; IJV; Korea; performance measurement; equity ownership; indirect control; strategic alliances; parent firms.

DOI: 10.1504/IJSBA.2009.025350

International Journal of Strategic Business Alliances, 2009 Vol.1 No.2, pp.113 - 131

Published online: 19 May 2009 *

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