Foreign Parent Firm Contributions, Experiences, and International Joint Venture Control and Performance

摘要

The paper aims to investigate the influence of parent firms' contributions and prior international joint venture (IJV) experiences on IJV control and performance. IJV control is conceptualized across three dimensions, including control mechanism, control focus, and control extent. The empirical evidence is based on the survey of Finnish firms that have established IJVs with local firms in the 1990s. The results showed that in different groups of contributions, parent firms prefer different control structures. These structures, in turn, have differently influenced IJV performance. The results also reveal that parent firms deployed different control structures in their IJVs according to their prior IJV experience. The more experience parent firms have, the less control they exercise over their IJVs. Besides, foreign firms, which have more experienced in IJVs, have better IJV performance. In addition, the prior IJV experience of foreign parent firms has different influences on total performance and financial performance.