Management controls in Sino-American joint ventures: a comparative case study

Research on the relationship between management controls andjoint venture performance offers conflicting results. Through detailed case analyses of four Sino-American jointventures, we examine three factors posited to affect control system design and performance. These include: (1)the degree of complementarity between the partners’ strategic objectives; (2) the transaction costs specific to each venture’s mode of governance; and (3) the degree of partner cultural fit. Based upon our case findings, we propose an empirically testable model ofjoint venture characteristics, control and performance.