This study focuses on the moderating effects of contingent variables on the control-performance relationship to re-explain the inconsistent results of extant studies on the control-performance relationship in the international JVs. Based on the litera...
This study focuses on the moderating effects of contingent variables on the control-performance relationship to re-explain the inconsistent results of extant studies on the control-performance relationship in the international JVs. Based on the literature review, three research hypotheses were proposed and questionaire survey method was adopted to gather the data. The sample was the international manufacturing JVs in Korea, and moderating regression analysis was used to test the hypotheses.
The major results of this study is as follows:
First, The variables about control mechanism do not have direct impact on the JV performance as expected. Second, the hypotheses about the moderating effect of contingent variables such as relational norms, asset specificity, and environmental dynamism was partially supported. Third, contingent variables except physical asset specificity have a direct impact on JV performance.
These empirical results indicate that it is more important to adopt the flexible contingent-fitted control structure which is responsive to the change of JV contingencies than establish control structures which aim at maximizing decision power in the early period of JV.