The Moderating Roles of Knowledge Tensions on the Control- Performance Relationship in IJVs

Based on the transaction cost theory, organizational learning and knowledge-based view, this study investigates how different types of management control affect multinational enterprises' (MNEs) satisfaction with international joint venture (IJV) performance. The study also examines the moderating effects of learning intent and the risks of knowledge spillover on the relationship between management control and IJV performance. Through an analysis of 162 Taiwanese JVs, we find that (1) when sharing-protecting tension is faced by MNEs or local partners, split management control can result in higher IJV satisfaction than other control types; and (2) when MNEs and local partners face learning-sharing-protecting tension simultaneously, split management control and MNE dominant management control can result in higher IJV satisfaction than sharing management control.