The impact of foreign parent control mechanisms upon measurements of performance in IJVs in South Korea

What is it about?

International Joint Ventures are a popular entry mode for foreign firms into relatively unknown or well protected markets. IJVs themselves represent a coming together of parents to create a company, thus requiring significant input from both to determine the direction and choices of the IJV. This paper looks into some of the ramifications of choices made in terms of control mechanisms on performance factors.

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Why is it important?

Parents use of personnel shows a direct relationship with satisfaction levels of IJV performance, while policy measures show significant relationships to both financial and growth measurements. The paper finds that through the use of multiple performance measurements there is a greater understanding of the implications of control of different aspects of an IJV.