The Characteristics and Dynamics of Management Controls in IJVs: Evidence from a Sino-Japanese Case

Forthcoming in Management Accounting Research

Posted: 16 Apr 2013

See all articles by Pingli Li

Pingli Li

Southampton Business School, University of Southampton

Guliang Tang

University of International Business and Economics

Hirosh Okano

Independent

Gao Chen

Independent

Date Written: April 15, 2013

Abstract

This paper examines the characteristics and dynamics of management controls in international joint ventures (IJVs) from multiple-dimensional perspectives. Adopting an in-depth case study method in the instance of a large automotive IJV formed between two Chinese and Japanese partners, the study seeks to improve on existing models by accounting for the three dimensions of management controls: mechanism, focus, and extent, and examining their interrelationships and dynamics. It offers the first observation on how, at the post-formation stage, parents may adjust the extent of control over specific activities or the tightness of a control mechanism to reflect environmental changes without unsettling their overall control structure; thus, a balance between stability and change is achieved. A shared but split control style is identified, supplementing previous descriptions of management style in IJVs, within which two partners share control access over the entire range of activities with broad control focus, but each possesses tight control only over certain specific activities.

Keywords: Management controls, International joint venture, Dynamics, Multiple-dimensions, China

Suggested Citation

Li, Pingli and Tang, Guliang and Okano, Hirosh and Chen, Gao, The Characteristics and Dynamics of Management Controls in IJVs: Evidence from a Sino-Japanese Case (April 15, 2013). Forthcoming in Management Accounting Research , Available at SSRN: https://ssrn.com/abstract=2251559

Pingli Li (Contact Author)

Southampton Business School, University of Southampton ( email )

Highfield,
Southampton, SO17 1BJ
United Kingdom

Guliang Tang

University of International Business and Economics ( email )

No. 10, Huixin Dongjie, Chaoyang District
Beijing, 100029
China

Hirosh Okano

Independent ( email )

Gao Chen

Independent ( email )

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