Investors' resource commitments and information reporting systems : Control in international joint ventures

This paper examines the effects of resource commitments on information reporting in international joint ventures (IJVs). Resources provided by a parent company to an IJV are expected to impact on the intensity and focus of information reported to it from that IJV. Findings from 20 Sino-British joint ventures confirm that a parent's resource commitment to the IJV, and the control this affords affects the information it receives from the IJV compared to that received by the other parent. They illustrate how the structuring of information feedback is a purposive control mechanism. The experience of the British parent companies suggests that an effective structure for feedback of IJV information requires integration between the provision of technology and occupancy of relevant IJV management positions. © 2002 Elsevier Inc. All rights reserved.