Bargaining Power, Management Control, and Performance in United States–China Joint Ventures: A Comparative Case Study

Abstract

This article reports a comparative case study of four joint ventures between partners from the United States and the People's Republic of China. The bargaining power of potential partners affects the structure of management control in a joint venture, which affects venture performance. Several informal control mechanisms interacting with formal control structure and influencing performance are identified. We also investigated the joint ventures' evolution over time. An integrative model of management control in joint ventures is presented.