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

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  • Newburry, William
  • Zeira, Yoram
  • Yeheskel, Orly

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.

Suggested Citation

  • Newburry, William & Zeira, Yoram & Yeheskel, Orly, 2003. "Autonomy and effectiveness of equity international joint ventures (IJVs) in China," International Business Review, Elsevier, vol. 12(4), pages 395-419, August.
    • Handle: RePEc:eee:iburev:v:12:y:2003:i:4:p:395-419
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    5. Galli Geleilate, Jose-Mauricio & Andrews, Daniel S. & Fainshmidt, Stav, 2020. "Subsidiary autonomy and subsidiary performance: A meta-analysis," Journal of World Business, Elsevier, vol. 55(4).
    6. Hsiang-Lin Cheng & C.-M. J. Yu, 2012. "Adoption of Practices by Subsidiaries and Institutional Interaction within Internationalised Small- and Medium-Sized Enterprises," Management International Review, Springer, vol. 52(1), pages 81-105, February.
    7. Lazarova, Mila & Peretz, Hilla & Fried, Yitzhak, 2017. "Locals know best? Subsidiary HR autonomy and subsidiary performance," Journal of World Business, Elsevier, vol. 52(1), pages 83-96.
    8. Yeheskel, Orly & Newburry, William & Zeira, Yoram, 2004. "Significant differences in the pre- and post-incorporation stages of equity international joint ventures (IJVs) and international acquisitions (IAs), and their impacts on effectiveness," International Business Review, Elsevier, vol. 13(5), pages 613-636, October.
    9. Wang, Qingtao & Bai, Xuan & Li, Julie Juan, 2023. "Achieving value co-creation through cooperation in international joint ventures: A two-level perspective," International Business Review, Elsevier, vol. 32(1).
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