1998
DOI: 10.1002/(sici)1097-0266(199806)19:6<579::aid-smj959>3.0.co;2-8
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The design of coordination and control mechanisms for managing joint venture-parent relationships

Abstract: Joint ventures (JVs), defined as independent organizations formed by the pooling of resources and sharing of equity by two or more firms, are being formed at an increasingly rapid pace. While much empirical research has examined the conditions which favor the formation of JVs, less attention has been paid to the equally important issues of control and implementation which are the focus of interest in this study. We identify two factors which are expected to influence the design of control mechanisms, i.e., (1)… Show more

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Cited by 220 publications
(151 citation statements)
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References 27 publications
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“…This may be because larger subsidiaries are more likely to be assigned bigger international clients (Newburry, 2001) and increasing size will result in increasing subsidiary interdependence with the HQ and other subsidiaries within the MNE (Johnson & Menguc, 2007). This would seemingly support the idea that in such instances there is a greater need for the HQ to coordinate an increasingly complex network to exploit the resources available in the subsidiary fully (Kumar & Seth, 1998;Prahalad & Doz, 1981). This is likely to require a higher degree of knowledge of subsidiary operations combined with greater awareness among subsidiary managers of the subsidiary's role within the global network.…”
Section: Discussionmentioning
confidence: 99%
See 1 more Smart Citation
“…This may be because larger subsidiaries are more likely to be assigned bigger international clients (Newburry, 2001) and increasing size will result in increasing subsidiary interdependence with the HQ and other subsidiaries within the MNE (Johnson & Menguc, 2007). This would seemingly support the idea that in such instances there is a greater need for the HQ to coordinate an increasingly complex network to exploit the resources available in the subsidiary fully (Kumar & Seth, 1998;Prahalad & Doz, 1981). This is likely to require a higher degree of knowledge of subsidiary operations combined with greater awareness among subsidiary managers of the subsidiary's role within the global network.…”
Section: Discussionmentioning
confidence: 99%
“…Further, Johnson and Menguc (2007) argue that increasing size results in increasing subsidiary interdependence with the HQ and other subsidiaries within the MNE. Building on earlier contributions (Kumar & Seth, 1998;Prahalad & Doz, 1981), they argue that this results in a greater need for the HQ to coordinate an increasingly complex network (see also Newburry, 2001). We argue that outward staffing flows may represent an effective means of maximizing the efficient allocation of resources and integration within the MNE's global network.…”
Section: H5: Older Subsidiaries Will Be More Likely To Report Flows Omentioning
confidence: 92%
“…Items for Work System Coordination (WSC) were adapted from Kumar and Seth (1998) and Chatterjee et al (2002) (11), pp. 2018(11), pp.…”
Section: Methodsmentioning
confidence: 99%
“…8 On corporate citizenship, see, for example, Kanter (1994); Googins (1997); Harbison and Pekar (1998); Kumar and Seth (1998);Pollack (1995);Williams (1994). 9 For network theory, see, for example, Agranoff and McGuire (1999); Bogason and Toonen (1998); Börzel (1998); Machado and Burns (1998); Chisholm (1998); for examples from political economy, see Lipsky andSmith (1989-1990); Ostrom (1996); Peters (1998); for selections from the new governance models, see Ferlie et al (1996); Boston et al (1996).…”
mentioning
confidence: 99%