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" A PERFORMANCE MODEL FOR AMERICAN MANUFACTURING AND SERVICE JOINT VENTURES IN SAUDI ARABIA "
A. Y. Al-Aali
Document Type
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Latin Dissertation
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Language of Document
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English
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Record Number
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1112489
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Doc. No
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TLpq303563718
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Main Entry
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A. Y. Al-Aali
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Title & Author
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A PERFORMANCE MODEL FOR AMERICAN MANUFACTURING AND SERVICE JOINT VENTURES IN SAUDI ARABIA\ A. Y. Al-Aali
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College
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Georgia State University
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Date
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1987
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student score
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1987
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Degree
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Ph.D.
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Page No
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226
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Abstract
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Little was known about the conditions internal to the Multinational Enterprise (MNE) that impacted the performance of its joint ventures (JVs) in developing countries. The JV literature suggested few factors, but they have not been tested empirically. Also, previous research has focused on the manufacturing JVs only. The objectives of this study are: (1) to test a proposed performance model for JVs in developing countries, and (2) to test the model for the manufacturing versus service JVs. The hypothesis in the model was that need (PN), commitment (CT), and control (CL) factors positively affect the JV performance. The model was tested on American JVs in Saudi Arabia. A total of 206 questionnaires was mailed to the U.S. corporate executives of the American JV partner, and 151 were returned. The analysis was carried on 93 responses (34 manufacturing and 59 service). The main findings of the research follow. (1) The Hotelling's T analysis shows that significant differences exist between manufacturing and service JVs. Overall, manufacturing JVs shows higher need and commitment scores, and lower control scores. (2) Stepwise regression analysis shows that the performance model has better explanation power for manufacturing JVs as opposed to service JVs or both combined. The performance model for manufacturing JVs includes 5 variables explaining 53% of the variation in the Performance Index (p. =.0005). (3) The profile of a successful manufacturing JV are: The U.S. partner has less tolerance for the JV structure, but includes the Saudi partner in all discussions, controls the capital budgeting decision and selection of JV chief executive officer, and does not need the Saudi partner to meet possible changes in ownership regulations. (4) Higher U.S. partner need, commitment, and control lead to improved performance. Finally, the study makes several recommendations to the MNE, the local partners, and the Saudi Arabian government. Also, areas for further research are suggested.
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Subject
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Management
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Social sciences
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