What is meant by international joint venture control? why is it such an important issue?

International Joint Ventures are created between
organizations from different countries with a belief that their individual strengths can
be used in a synergetic manner.

Controls are especially
important in international joint ventures as organizations from different countries have
different work cultures and different objectives. A conflict in the objectives of the
organizations that are part of the joint venture can lead to a failure of the joint
venture.

To ensure that joint ventures are able to fulfill
their purpose of creation formal controls mechanisms are created that consist of sets of
rules that are accepted by all the entities. These include rules for the constitution of
the board of directors, the procedures to appoint personnel, creation of budgets,
allocations of resources, etc. In addition to formal control mechanisms, social controls
are used to allow easy communication, exchange of knowledge and information and creation
of relations that make it easy for everyone to work toward the desired
goals.