Board representation in international joint ventures

• Main Authors: CUYPERS, Ilya R. P., ERTUG, Gokhan, REUER, Jeffrey J., BENSAOU, Ben
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2017
• Subjects: alliance governance; equity ownership; international joint ventures; joint venture boards; survey data; International Business; Organizational Behavior and Theory; Strategic Management Policy
• Online Access: https://ink.library.smu.edu.sg/lkcsb_research/5038; https://ink.library.smu.edu.sg/context/lkcsb_research/article/6037/viewcontent/Board_representation_in_international_joint_ventures_pp_2017.pdf
• Institution: Singapore Management University

Relatively little attention has been paid to boards in international joint ventures (IJVs), and the composition of these boards in particular. We examine the determinants of foreign partners' representation on IJV boards in order to advance our knowledge of this facet of IJV governance. We argue that a foreign partner's representation on the IJV board is related to its equity contribution. However, we hypothesize that this relationship is moderated by IJV and host country characteristics that affect the importance of the internal and external roles IJV boards serve. These results provide insights into the conditions under which a partner might wish to secure greater board representation for its level of equity, or utilize less board representation than might be suggested by its equity level alone.