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THE NON-LINEAR RELATIONSHIP BETWEEN OWNERSHIP, CONTROL, AND PERFORMANCE IN INTERNATIONAL JOINT VENTURES

Sangcheol Song

Bryant University, USA

ABSTRACT

This study examines the relationship between ownership, management control, and performance in international joint ventures (IJVs). In particular, this study examines a non-linear relationship among these three constructs. Considering non-ownership factors affect management control and performance in IJVs, our model includes the types of contributing resources and level of partner credibility. Empirical results show that the effective control and performance of IJVs are affected not only by majority ownership but also by the types of key resources contributed by IJV partners as well as the ways these resources are combined for the joint businesses. Furthermore, we find that relational assets like trust between partners influence management control and performance as well.

Key words: International joint ventures, ownership, control, performance, resources, trust.

JEL Codes: D22, F23