Abstract
This study examines a range of self-selection (alternatives and achievement motivation) and socialization (Western training and indoctrination) factors that are likely to be related to the use of formal budget controls in a U.S.-Sino joint venture (JV) and its state-owned Chinese partner in China. The formal budget mechanisms comprised participation in budget setting, budget emphasis in performance evaluation, and merit-based reward structure. Hypothesised relationships were set up between these variables and tested using a LISREL path model. The analysis was confined to a survey of 63 Chinese sub-unit managers in a single U.S.-Sino JV and its state-owned enterprise (SOE) partner in the advertising industry. The relationships between manager self-selection, socialization practices, and the use of merit-based rewards were found to be significant, regardless of the type of entity. The results indicate that self-selection (achievement motivation) and socialization processes are important co-determinants of the use of formal budget controls in the China context. This study is one of the firsts to test the role of self-selection and socialization in the management control of organizations in China.
Original language | English (US) |
---|---|
Pages (from-to) | 135-148 |
Number of pages | 14 |
Journal | Journal of Business Research |
Volume | 52 |
Issue number | 2 |
DOIs | |
State | Published - May 2001 |
Externally published | Yes |
Keywords
- Chinese management
- International joint ventures
- Management control
ASJC Scopus subject areas
- Marketing