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Control mechanisms, key personnel appointment, control and performance of Sino-Singaporean joint ventures

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  • Wang, Pien
  • Wee, Chow Hou
  • Koh, Peck Hiong

Abstract

The results of a questionnaire survey of 132 managers and personal interviews of 40 managers showed that the ranking of the importance of different mechanisms used to exercise control over Sino-Singaporean joint ventures (JVs) differed, depending on the equity stakes of the Singaporean parent firms. This study also found that the majority of Singaporean parent firms had the right to appoint the general manager, chairman of the board, and the financial manager of their China subsidiaries. When compared with firms without the right to appoint personnel to key positions in the JVs, those Singaporean parent firms with the right to do so felt that they had greater control over their China subsidiaries and they were also more satisfied with the performance of these subsidiaries.

Suggested Citation

  • Wang, Pien & Wee, Chow Hou & Koh, Peck Hiong, 1998. "Control mechanisms, key personnel appointment, control and performance of Sino-Singaporean joint ventures," International Business Review, Elsevier, vol. 7(4), pages 351-375, August.
    • Handle: RePEc:eee:iburev:v:7:y:1998:i:4:p:351-375
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    2. Shi, Yangyan & Zhang, Abraham & Arthanari, Tiru & Liu, Yanping & Cheng, T.C.E., 2016. "Third-party purchase: An empirical study of third-party logistics providers in China," International Journal of Production Economics, Elsevier, vol. 171(P2), pages 189-200.
    3. Aurora Teixeira & Li Shu, 2012. "The level of human capital in innovative firms located in China. Is foreign capital relevant?," Journal of the Asia Pacific Economy, Taylor & Francis Journals, vol. 17(2), pages 343-360.
    4. Marcela Porporato, 2009. "Timing and drivers of management control systems in joint ventures," Qualitative Research in Accounting & Management, Emerald Group Publishing Limited, vol. 6(4), pages 247-274, October.
    5. Naoki Ando & Dong Kee Rhee & Namgyoo Park, 2008. "Parent country nationals or local nationals for executive positions in foreign affiliates: An empirical study of Japanese affiliates in Korea," Asia Pacific Journal of Management, Springer, vol. 25(1), pages 113-134, January.
    6. Belderbos René A. & Heijltjes Mariëlle G., 2003. "The Determinants Of Expatriation In Japanese Multinationals: Vertical Business Groups And Executive Staffing Policies In Asia," Research Memorandum 055, Maastricht University, Maastricht Research School of Economics of Technology and Organization (METEOR).
    7. Park, Byung Il & Choi, Jiyul, 2014. "Control mechanisms of MNEs and absorption of foreign technology in cross-border acquisitions," International Business Review, Elsevier, vol. 23(1), pages 130-144.

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