Does Learning Process Mediate the Relationship between Social Control and Production Innovation of International Joint Ventures in China?

Cheng Wang,Hailin Lan,Hongming Xie

doi:10.4236/jssm.2010.31010

Abstract

A comprehensive model that delineates the interrelationships among social control, learning process and production innovation in international joint ventures is absent. This study aims to fill this void. Unlike previous research, this study investigates the role of social control, in facilitating learning process and production innovation in China. In our framework, we argued that learning process mediated the impact of social control on production innovation. In order to test the feasibility of this framework, we conducted an empirical study. This study employed a survey instrument, which contained data collected from 300 organizations international joint ventures in South China. A total of 96 usable responses were analyzed. The results indicate that social control has a positive impact on learning processes and production innovation. Learning process partial mediate the influence of social control on production innovation. The implications of the study are provided, and future research is suggested.

Highlights

International joint ventures (IJV) are a common organizational form
The bivariate correlations show that similarity is significantly related to social control, learning process and production innovation
The results show that learning process partial mediates the relationship between social control and production innovation

Summary

Introduction

International joint ventures (IJV) are a common organizational form. Increased international joint venture activity has been seen as one of the major changes in international business environment in the past decade. The exercise of managerial control has been one of the most important subjects in the IJV literature. Control has long been recognized as an important aspect of an organization’s management of exchange relationships. Control considerations are important for any organization, they are especially so when managing organizational exchanges across diverse national environments. The major function of control involves bringing about conformance to organizational requirements and achievement of ultimate purpose of the organization

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