DOI

10.1287/orsc.8.3.257

Abstract

The authors examine the meaning of control in international joint ventures (IJVs) and the relationships of potential means of control in such organizations to the performance satisfaction of the foreign partner. They propose a conceptual model that provides both a traditional ownership-focused internalization perspective on those issues and an integrated approach combining a broader transaction cost interpretation of control with a resource input-based bargaining power model. A set of simultaneous structural equations with endogenous
explanatory variables provides multiple possible paths from various resource and power inputs through different means of control to perceived performance satisfaction. In such a model, intermediate variables act both as dependent
and independent variables; thus the complex theoretical interactions of the variables are modeled more comprehensively and realistically than in single-equation models.

Document Type

Article

Publication Date

5-1997

Publisher Statement

Copyright © 1997 INFORMS. This article first appeared in Organization Science: A Journal of the Institute of Management Sciences 8, no. 3 (May/June, 1997): 257-74.

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