Zhang, J; Ouyang, Y; Li, H; Ballesteros-Pérez, P and Skitmore, M (2020) Simulation analysis of incentives on employees' acceptance of foreign joint venture management practices: A case study. Engineering, Construction and Architectural Management, 27(8), pp. 2047-2078. ISSN 0969-9988
Abstract
Purpose: Cultural differences between employees of different nationalities are hindering the development of some transnational joint ventures. Describing and modelling the positive (or negative) factors that cause joint venture employees to accept (or reject) joint management business practices is of great value to all corporations operating abroad with locally sourced employees. Design/methodology/approach: This study uses a Sino-Japan construction joint venture project as a representative case study. First, structural equation modelling is used to identify the factors influencing Chinese employees' acceptance of joint venture management practices. Then, a system dynamics model is adopted to simulate the time-dependent effects of the incentives. Findings: The study results (1) indicate which incentives strongly affect employee acceptance of joint venture management practices; (2) identify inefficient management practices in cross-cultural joint ventures; and (3) provide evidence that the employees' perceptions of clear purpose, good working relationships and helpful mechanisms positively and directly also support their acceptance of joint management practices. Originality/value: –A dynamic simulation method is used to analyse the influence of various incentive factors on employee acceptance of joint management. This provides unprecedented information regarding how these factors interact with each other, hence how their effectiveness varies (both positively and negatively) over time. Further findings also provide new ideas for joint venture managers to adopt more effective management methods.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | joint ventures; management incentives; organisation diagnosis; structural equation model; system dynamics |
| Index terms: | effectiveness, structural equation model, modelling, case study, joint venture, system dynamics, methodology, management practice, management method, evidence, manager, simulation analysis, cultural difference, structural equation modelling, Japan |
| Subjects: | management, performance management, research methods, Geography, cross-cultural studies, statistical analysis, data collection methods, evaluation and assessment methods, business, practitioner, computing systems, design analysis, analytical methods |
| Topics: | Quality Management, International Construction, Design Practice, Digital Applications, Geographical Context, Research Practice, Engineering Principles, Business Strategy, Roles and Professions |
| Descriptive scope: | 5 PCTEA |
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