ABSTRACT
This chapter reports two empirical studies of the bargaining power-control-performance relationships. The first study, using a multiple case method, is an inductive examination of four manufacturing joint ventures between U.S. and Chinese firms. The hypotheses developed as a result of the case studies were subsequently tested in the second study using firsthand survey data collected from a sample of ninety American-Chinese joint ventures in China. The results of both studies indicate a positive linkage between partner bargaining power and control and a significant effect of the venture’s control structure on performance. In addition, a strong link was found between the interpartner working relationship and the venture performance.
