Autonomy and effectiveness of equity international joint ventures (IJVs) in China

William Newburry, Yoram Zeira, Orly Yeheskel

Research output: Contribution to journalArticlepeer-review

Abstract

Using a sample of 153 equity international joint ventures (IJVs) located in China, this paper examines when autonomy is correlated with IJV effectiveness. Correlations are strongest with respect to autonomy to implement (without power to formulate) strategic business plans. The ability to both formulate and implement strategic business plans is also associated with effectiveness, especially when evaluated by the IJV chief executive officers (CEOs). The autonomy-effectiveness relationship is stronger for IJVs that are older, larger, operating in heavy industry, or have parents with more similar goals. Strong autonomy-effectiveness correlations exist whether IJV CEOs or regional headquarters personnel evaluate their IJVs, although correlations are generally higher when IJV CEOs evaluate their IJVs.

Original languageEnglish
Pages (from-to)395-419
Number of pages25
JournalInternational Business Review
Volume12
Issue number4
DOIs
StatePublished - Aug 2003
Externally publishedYes

Keywords

  • Autonomy
  • Effectiveness
  • International Joint Venture

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