Informal Control, Knowledge Integration and IJVs Innovation: An Empirical Research in South China

This study combines informal control theory and knowledge integration perspectives to develop a general model of management innovation in International joint ventures (IJVs). We analyze this model using a structural equation model approach, with 96 manufacturing and service IJVs in China selected as the samples. Our results indicate that informal control positively affects knowledge integration of IJV and knowledge integration plays a mediating role between IJVs' informal control and management innovation. The results suggest that significant advantage can be achieved for IJVs' management innovation by informal control carried out by parent companies, with the fostering of knowledge integration.