Abstract

Because the level of uncertainty experienced by the two parties differs, operating autonomy in Chinese joint ventures (JVs) can be predicted with asymmetrical accuracy. Resource contributions, ownership structure, and strategic intent of partners all contribute to autonomy in their quality-, market-, and import/export- related decisions. Results indicate that the foreign partner’s control tendency is easier to predict than the Chinese partner’s control tendency which is consistent with the resource dependence framework. Although the strategic behavior perspective of each partner explains some of their autonomy decisions strategic importance is a less significant predictor of operating autonomy than equity and resources.

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Citation

Harrigan, Kathryn, and Wei Yang. "Autonomy in Chinese Joint Ventures." Working Paper, Columbia Business School, March 18, 2010.

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