Abstract
This chapter deals with cheating in a cooperative enterprise in an international context. Since an international joint venture (IJV) is a complex organizational form of market entry, the information asymmetries between the parent firms and their cooperative venture may be an important determinant of the success or failure of the endeavour. The problem of cheating may exist between the players in an IJV because of the possibilities for hidden action by the participants. This chapter, therefore, aims to develop a typology to show the likelihood of cheating in this international context. It develops a theoretical model that should help managers to decide on appropriate incentive schemes within the remuneration structure for employees in IJVs, based on cultural and institutional differences, to reduce the likelihood of cheating.
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© 2006 Palgrave Macmillan, a division of Macmillan Publishers Limited
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Ott, U.F. (2006). Cheating and Incentive Schemes in International Joint Ventures. In: Fai, F.M., Morgan, E.J. (eds) Managerial Issues in International Business. The Academy of International Business. Palgrave Macmillan, London. https://doi.org/10.1057/9780230800700_3
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DOI: https://doi.org/10.1057/9780230800700_3
Publisher Name: Palgrave Macmillan, London
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