Control, Conflict, and Performance: A Study of U.S.-Chinese Joint Ventures

Abstract

This study was designed to test empirically the linkages between control, conflict, and performance using a sample of U.S.-Chinese joint ventures established in China during the period of 1979–1989. Data were gathered through a questionnaire survey among U.S. managers and personal interviews with both U.S. and Chinese general managers in the selected joint ventures. Results showed that dominant managerial control exercised by the foreign partner had a positive impact on the perceived joint venture performance. The study identified major areas in which conflict between joint venture partners occurred. Empirical evidence was found that conflict between joint venture partners significantly hindered joint venture performance.