Of course, we cannot assume equal ownership of the W partners; where ownership is unequal, the partners will claim control and staffing choices proportionate to the ownership share. The choice of the IT'! general manager, in particular, will influence the relative allocation of control because that person is responsible for running the IJV and for coordinating relationships with each of the parents.37
Where ownership is divided among seveal partners, the parents are more likely to delegate the daily operations of the IJV to the local IJV management - a move that resolves many potential disputes. In addition, the increased autonomy of the 1W tends to reduce many common human resource problems: staffing friction, blocked communication, and blurred organizational culture, to name a few, which all result from the conflicting goals and working practices of the parent companies?8 Regardless of the number of parents, one way to avoid such potential problem situations is to provide special training to managers about the unique nature and problems of IJVs.-
Various studies reveal three complementary and interdependent dimensions of flV control: (1. the focus of lJV control - the scope of activities over which parents exercise control; (2. the extent, or degree, of IJV control achieved by the parents; and (3. the mechanisms of IJV control used by the parents.
We can conclude from two research studies - Geringer's study of 90 developed country IJVs and Schaan and Beamish's study of 10 IJVs in Mexico - that parent companies tend to focus their efforts on a selected set of activities that they consider important to their strategic goals, rather than attempting to monitor all activities.Schaan also found a considerable range of mechanisms for control used by the parent firms in his study (detailed in Exhibit 7-6., including indirect mechanisms such as parent organizational and reporting structure, staffing policies, and close coordination with the IW general manager (GM). Monitoring the GM typically includes indirect means, perhaps bonuses and career opportunities, and direct mechanisms, such as requiring executive
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