Determinants of the use of various control mechanisms in US–Chinese joint ventures

Abstract

This study of US–Chinese joint ventures examined the effects of relative partner knowledge and specific asset investments on the usage of various types of control mechanisms. These controls included expatriate staffing, socialisation practices, delegated decision-making responsibilities, parent company communications and manager performance incentives. Based on field visits and survey data, we found that partner knowledge and specific asset investments influenced a broad set of controls. Whilst the US joint venture partners considered controls to be particularly useful for the selective transmission and protection of their knowledge, the Chinese partners viewed these same controls as a means to selectively share and protect their specific asset investments in the ventures.