Alliances articles - Reuer/Klijn/Lioukas: Board Involvement in International Joint Ventures

5 important questions on Alliances articles - Reuer/Klijn/Lioukas: Board Involvement in International Joint Ventures

What are International Joint Ventures (IJV) according to RK&L?

Hybrid organizational forms that can require administrative control to facilitate monitoring and coordinated adaptation in the presence of exchange hazards. At the same time the fact that IJV's operate in different host countries can make it efficient to delegate authority to local management for certain collaborations. 

How will RK&L investigate the determinants of IJV board envolvement? 

They examine characteristics of IVJ's that reflect this underlying tension. 

What does an IJV board represent and what is it? (RK&L)

A formal governance mechanism available during JV implementation as it provides administrative control to facilitate monitoring and coordination of an IJV for parent firms. The IJV board sits at the top of an organization owned by 2 or more shareholders, and it can help ensure that the JV strategies and actions fit with the parents firms' and can address performance problems or conflicts that might arise.
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Why is it also suggested that IJV board shouldn't be heavily engaged?

Efficiency considerations would suggest that not all IJV boards should be heavily engaged as there might be gains to delegating more authority to local management for certain international collaborations.

RK&L suggest that the hybrid and international aspects of IJV's lead to fundamental tensions between low or high board involvement. This contribution of their research it to identify the tensions (2 mechanisms) and to associate them with specific IJV characteristics. What is their suggestion/conclusion?

They conclude that the board involvement reflects efficiency considerations in individual ventures, and the administrative control provided by boards is an important dimensions of IJV governance.

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