This site uses cookies to store information on your computer. Some are essential to make our site work; others help us improve the user experience. By using the site, you consent to the placement of these cookies. Read our privacy policy to learn more.

Business

Management control: automotive IJVs with Chinese parent companies Logo cima

  Pingli Li, Guliang Tang, Hiroshi Okano & Chen Gao |   Free |   CIMA |   2011 |   Thought leadership

This project investigated the management controls exerted by overseas and local parents in four automotive international joint ventures (IJVs) in China. A shared but split management style was identified, which supplements the previous studies on IJVs management. The study also found evidence on the dynamics of management controls and the drivers behind change. Over time, IJVs have become common in a wide range of industries due to rapid technological changes and increased emphasis on globalisation strategies. The emergence of China as the ’factory to the world’ and its rapidly growing domestic market are attractive to investors. For example, in 2009 China sold 13.5 million vehicles and became the largest car market overtaking the United States who sold 10.4 million in 2009. Established ‘old world’ firms cannot ignore these markets if they want to maintain pre-eminence in mass markets. (PDF 427KB)

Topics covered:
  • Management accounting: Business: Market & regulatory environment, Advanced

Flash Player 9.0.0 or above

Comments/Reflections