Simulation analysis of incentives on employees' acceptance of foreign joint venture management practices: a case study
Engineering, Construction and Architectural Management
ISSN: 0969-9988
Article publication date: 9 May 2020
Issue publication date: 21 September 2020
Abstract
Purpose
Cultural differences between employees of different nationalities are hindering the development of some transnational joint ventures. Describing and modelling the positive (or negative) factors that cause joint venture employees to accept (or reject) joint management business practices is of great value to all corporations operating abroad with locally sourced employees.
Design/methodology/approach
This study uses a Sino-Japan construction joint venture project as a representative case study. First, structural equation modelling is used to identify the factors influencing Chinese employees' acceptance of joint venture management practices. Then, a system dynamics model is adopted to simulate the time-dependent effects of the incentives.
Findings
The study results (1) indicate which incentives strongly affect employee acceptance of joint venture management practices; (2) identify inefficient management practices in cross-cultural joint ventures; and (3) provide evidence that the employees' perceptions of clear purpose, good working relationships and helpful mechanisms positively and directly also support their acceptance of joint management practices.
Originality/value
–A dynamic simulation method is used to analyse the influence of various incentive factors on employee acceptance of joint management. This provides unprecedented information regarding how these factors interact with each other, hence how their effectiveness varies (both positively and negatively) over time. Further findings also provide new ideas for joint venture managers to adopt more effective management methods.
Keywords
Acknowledgements
This research is supported by the National Natural Science Foundation of China (No. 71301013); National Social Science Fund Post-financing projects (No. 19FJYB017); Humanity and Social Science Program Foundation of the Ministry of Education of China (No. 17YJA790091); List of Key Science and Technology Projects in China's Transportation Industry in 2018-International Science and Technology Cooperation Project (No. 2018-GH-006); Shaanxi Social Science Fund (Nos. 2017S004 and 2016ZB017); Shaanxi Province Social Sciences Major Theoretical and Practical Research Fund (Nos. 2019Z191 and 2017Z028); Xi'an Social Science Fund (No. 18J139); Xi'an Construction Science and Technology Planning Project (No. SJW201705); Xi'an Science Technology Bureau Fund (No. 201805070RK1SF4(6)); Shaanxi Universities Second Batch of Youth Outstanding Talents Support Projects (No. [2018]111); Shaanxi Province Higher Education Teaching Reform Project (No. 17BZ017); Education Funding of Master of Engineering Management in China (No. 2017-ZX-004); Shaanxi Province Civil Engineering ‘first-class professional’ project (Nos. 300103292804 and 300103282803); Special Fund for Graduate Student Education Reform of Central College, Chang'an University (Nos. 300103190413, 300103190018, 300103190943, 300111002005, 300103187091, 310623176201, 310623176702, 310628176702 and 310628161406); Fundamental Research for Education Reform of Central College, Chang'an University (Nos. 300104292305, 300104292304, 300104292308, 300103292806, 300104282301, 300104282318, 300104282323, 310623172904, 310623171003 and 310623171633); Fundamental Research for Funds for the Central Universities (Humanities and Social Sciences), Chang'an University (No. 300102239616); Fundamental Research for Funds for the Central Universities, Chang'an University (No. 300102238201); The fourth author acknowledges the Spanish Ministry of Science, Innovation and Universities for his Ramon y Cajal contract (RYC-2017-22222) co-funded by the European Social Fund.
Citation
Zhang, J., Ouyang, Y., Li, H., Ballesteros-Pérez, P. and Skitmore, M. (2020), "Simulation analysis of incentives on employees' acceptance of foreign joint venture management practices: a case study", Engineering, Construction and Architectural Management, Vol. 27 No. 8, pp. 2047-2078. https://doi.org/10.1108/ECAM-06-2019-0321
Publisher
:Emerald Publishing Limited
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