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Exercising the Strategic Role of the Board and Management

  • Yanni Yan

Abstract

This chapter describes how a firm’s equity investment in an international strategic alliance may allow privileges such as veto rights and how it enables management influence through representation on the board of directors. A wide range of control strategies are available to an international strategic alliance including the board of directors, an array of contractual agreements concerning the firm’s non-capital investments, the appointment of key managerial personnel and formalized reporting relationships. Foreign firms’ investments may adopt a particular governance strategy in China, such as concentrated ownership in a strategic alliance that enables them to leverage their superior technologies or managerial expertise as well as to protect their proprietary assets. State ownership in a strategic alliance is frequently used as a means to achieve public-policy objectives. The actual equity share of the partner firms may serve as an adequate indicator of the extent of its influence on a strategic alliance’s management and the level of a partner firm’s management involvement.

Keywords

Corporate Governance Host Country Board Member Foreign Firm Strategic Alliance 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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Copyright information

© Yanni Yan 2005

Authors and Affiliations

  • Yanni Yan

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