Timing and drivers of management control systems in joint ventures: The effect on JV survival
Qualitative Research in Accounting & Management
ISSN: 1176-6093
Article publication date: 2 October 2009
Abstract
Purpose
The purpose of this paper is to describe the timing of management control systems (MCS) implementations, their drivers and effect on joint venture (JV) survival.
Design/methodology/approach
This paper draws on case study data (archival data, interviews, and site visits) collected at three JVs in the automotive industry. Contingency theory is used to define Cartesian relationships.
Findings
A description of the timing and reasons for MCS implementation in JVs is provided. Initially, environment, strategy, and partner culture are considered to implement governance mechanisms and transfer prices/cost allocations for long‐term transfers of technology and corporate services. Later, structural and technological factors are considered to implement operative MCS such as budgeting, transfer prices/cost allocations of manufactured parts and performance measurement.
Research limitations/implications
All three JVs studied: belong to the automotive industry (SIC 3174); have balanced ownership (50/50); and have one partner in common (a European family‐owned business with professional management). Data are obtained mainly through site visits, five interviews, five mailed questionnaires, and public and private archival data.
Originality/value
The paper is the first to offer a descriptive model of the timing of MCS implementation in 50/50 JVs explained by the effect of contingent factors in each stage of the JV life and in JV survival.
Keywords
Citation
Porporato, M. (2009), "Timing and drivers of management control systems in joint ventures: The effect on JV survival", Qualitative Research in Accounting & Management, Vol. 6 No. 4, pp. 247-274. https://doi.org/10.1108/11766090910989518
Publisher
:Emerald Group Publishing Limited
Copyright © 2009, Emerald Group Publishing Limited