Implicit Incentives in International Joint Ventures An Experimental

Managers in international joint ventures work with resources contributed by investors from multiple nationalities. Fan Wu shows through a series of experimental studies among students and managers from China, South Korea, Germany, and the USA that cultura

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GABLER RESEARCH International Management Studies Herausgegeben von edited by Prof. Dr. Birgitta Wolff

Die Schriftenreihe trägt dazu bei, Erkenntnisse aus der internationalen Unternehmensforschung zu verbreiten. Die meisten Beiträge zeichnen sich durch eine Fundierung auf die theoretische Basis der Neuen Institutionenökonomik sowie eine empirische Analyse aus. Die Reihe ist offen für Arbeiten in deutscher und englischer Sprache. The series aims at circulating insights from research projects on international corporations. Most of its contributions are characterized both by a foundation on a theoretical basis of the New Institutional Economics and an empirical analysis. The series is open to works in German and in English.

Fan Wu

Implicit Incentives in International Joint Ventures An Experimental Study With a foreword by Prof. Dr. Birgitta Wolff

RESEARCH

Bibliographic information published by the Deutsche Nationalbibliothek The Deutsche Nationalbibliothek lists this publication in the Deutsche Nationalbibliografie; detailed bibliographic data are available in the Internet at http://dnb.d-nb.de.

Dissertation Universität Magdeburg, 2010

1st Edition 2012 All rights reserved © Gabler Verlag | Springer Fachmedien Wiesbaden GmbH 2012 Editorial Office: Marta Grabowski | Anita Wilke Gabler Verlag is a brand of Springer Fachmedien. Springer Fachmedien is part of Springer Science+Business Media. www.gabler.de No part of this publication may be reproduced, stored in a retrieval system or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the copyright holder. Registered and/or industrial names, trade names, trade descriptions etc. cited in this publication are part of the law for trade-mark protection and may not be used free in any form or by any means even if this is not specifically marked. Cover design: KünkelLopka Medienentwicklung, Heidelberg Printed on acid-free paper Printed in Germany ISBN 978-3-8349-3235-8

Foreword Dr. Wu’s book contributes to the series “International Management Studies” in both the theoretical framework and the empirical analysis. She employs the New Institutional Economics as the theoretical framework, and collects data in different countries with participants of different national background using a combination of different empirical methods. The purpose of the study is to find out the implicit incentives of decision makers in international joint ventures. In such joint ventures, the joint venture manager is making decisions using resources contributed by multiple investors. The managers may have reasons to make decisions that are beneficial for one investor or another, depending on their national backgrounds and their expectation to work with one of the investors after working in the joint venture. Based on findings from over 30 interviews with international joint venture managers and investors, Dr. Wu proposes the cultural affinity and the career perspective as two of the most important incen