IJV Formation Motivations And Management Control

International Joint Ventures (IJVS) became one of the main strategies for the multinational firms to enter oversea markets in the last several decades. In 1980s, IJVs have already been broadly used by firms from different countries or areas. In 1990s, the number of IJVs is increasing worldwide. Previous researches on joint ventures are mainly focus on strategic motives for IJVs' formation, partner selection criterias, management control and IJVs'performance. But few researchers have study these issues from a systemic and holistic view. This paper attempt to find out how the strategic motives for IJVs' formation effect IJVs' management control, while take parents' resource contribution as the mediator and IJVs' strategic importance as the moderator. It has answered three questions:1) what is the relationship between IJV formation motives and IJVs' management controls; 2) how does parents' resource contribution mediate the relationship between IJVs' formation motives and IJVs' management controls; 3) How does IJVs' strategic importance moderates the relationship between parents' resource contribution and IJVs' management controls?The results find that markets entry-motivation and competition-motivation is positively related with IJVs' management controls; strategic resource-motivation, competition-motivation and efficiency-motivation is negatively related with IJVs' management controls. Besides, parents' resource contribution does mediate the relationship between IJV's formation motivation and IJVs' management controls. Finally, IJVs' strategic importance negatively moderates the relationship between parents' resource contribution and IJVs' management controls?...