Dimensions of Control in UK International Joint Ventures*

From a sample of UK joint ventures with partners from Western Europe, the USA and Japan, dimensions of parent control of the ventures are considered by way of a taxonomy based on the mechanisms, extent and focus of control. The origins of the mechanisms of control identified in the study indicate that UK parents have not been sufficiently responsible for providing the mechanisms to allow them to exercise a greater leverage of control than that obtained by the foreign partners. The origins of the mechanisms of control also indicate relatively little autonomy for the managements of the joint ventures. Evidence from the study supports the view that joint venture parents seek to focus their influence of control over particular decisions and activities of the venture, rather than attempting to extend their control over the whole venture. The study considers the mechanisms and focus of control across the characteristics of the sample: contractual form of the venture, relative equity shareholding of the UK parent, time period of formation, nationality of foreign partner, industry group of the venture and broad purpose of the venture. Chi-squared tests show that there is little evidence of any systematic variation in the dimensions of control across the characteristics of the sample, the major exception to this being the relative equity shareholding of the UK parents.