Bargaining power, ownership and control of international joint ventures in Taiwan

• Main Author: Yang, Min Li
• Published: University of Glasgow 2006
• Subjects: 658.11440951249; HF Commerce : HB Economic Theory
• Online Access: http://ethos.bl.uk/OrderDetails.do?uin=uk.bl.ethos.426620

This thesis provides an empirical analysis of international joint venture activities in Taiwan. The primary purpose is to examine control and its antecedents in terms of ownership, bargaining power, resources contribution, and motivation for forming international joint ventures. Primary data collected by a mail questionnaire is analysed along five core dimensions of international joint venture activities. First, the mechanism, focus, and extent of parent control is identified and tested in a number of sample characteristics. These empirical results also reveal that most joint ventures in Taiwan have higher autonomy and have more autonomy on the appointment of key function managers. Parent firms seek to focus their control over specific activities of the joint ventures rather than attempting to control the entire range of joint venture activities. Second, the results of equity shares held by the host country parents and foreign parents show that both parents have minority shareholding in the joint ventures. A higher ownership by the parents in joint ventures indicates that they have a higher percentage of board members. Third, the relative importance of a set of bargaining power is identified with hypothesis testing of the relationship between control and bargaining power. There is little evidence that the relationship between bargaining power and control is not closely associated. Fourth, the relative importance of resource contribution by parents is identified and hypotheses are tested on the relationship between control and resource contribution factors. The results are strongly supported that the relationships between resource contributions in terms of physical, invisible, financial, human, and organizational ability of parents and their control has significant and positive associations. Fifth, the relative importance of a set of motives for international joint venture formation is identified and hypotheses are tested on the relationship between control and motivation factors in terms of technological acquisition, knowledge learning, risk sharing, competitive strategy consideration, resource complementarily, market expansion. The findings reveal a limited number of significant correlations between motivation factors and control.