| International joint venture (IJV) is one of the fundamental and major methods adopted by MNCs to explore the market of China. MNCs make sure of effective using all the resources putting into IJVs. However, IJVs might depart from the global strategies and goals of their parent companies as they face various systems and cultures and they are far away from parent countries and headquarters, so it is very necessary to put IJVs into control. IJV is responsible for the achievement of both parents, so how to effectively control IJVs is the key for MNCs to achieve their strategic goals and promote sustainable development of IJVs.Drawing on the review and criticism of foreign and domestic theories regarding MNCs, IJV and relevant management control, and referring to the theory of organization learning and knowledge management, the dissertation analyze the control of MNCs on IJVs. The dissertation construe the control framework of MNCs, and according to different kinds of resources put into JVs by parents, the research analyzes two kinds of corporate control of MNCs: tangible and intangible controls. Combined with theories of organization learning and knowledge management, the research discusses deeply the interactivity of control modes, and analyzes the effecting factors when choosing appropriate control modes. Then based on the analysis of the relative importance of various production factors in corporate operations, the research analyzes in detail each controlling methods of tangible and intangible control, including the working mechanism, behavior patterns and results, and the factors influencing the controlling methods and the relationship among these methods. Citing MNCs in China as examples, the dissertation empirically analyzes the relationship between control methods and control performance. The dissertation ends with conclusions and implications.The conclusions of the dissertation are as follows. 1) The control of MNCs is based on putting resources into IJVs, and the control framework includes objectives, choices, operation and modify. Tangible and intangible controls are interactive each other, in which organization learning and knowledge management play an important roles. 2) Tangible control in based on stockholding control, and through governance and board of JVs, put organization control on IJVs. With human resources, marketing and other functions become more local in IJVs, more and more MNCs enhance organization control by organization design and management information system. 3) The intangible control is constructed mainly by knowledge control which is technology transfer to IJVs. Knowledge control not only needs the demands of both, but conceals and even increases control power of MNCs to IJVs, the same as culture control and core competence, which are important modes of intangible control. 4) Knowledge control is the most important and most powerful mode adopted by MNCs. Controlling IJVs by affecting the flow of knowledge (knowledge transfer) between parents and subsidiaries, changing the bargain power of both, knowledge control can affect other control modes. Organization learning and knowledge management also play important roles here. 5) The dissertation empirically analyzes the relationship between control methods and control performance, and the remarkable effects to control performance by organization, knowledge, culture and core competence controls. The research insists of control performance has little to do with stockholding and governance controls, and the effect of core competence can be revealed by organization and knowledge controls in which organization control plays more better. 6) Chinese corporate should realize the demands and preponderant resources of themselves and partner's to increase bargain power and enhance organization control to IJVs, and establish knowledge system of their own to maintain competence advantages. That would be benefit to both parents, and promoting the development of IJVs, and achieving objectives of both. |
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