Control mechanisms of their subsidiaries by multinational firms: A multidimensional perspective

Jaussaud, Jacques; Schaaper, Johannes

doi:10.1016/j.intman.2005.04.001

Cited by 70 publications

(64 citation statements)

References 26 publications

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“…Reliable and timely reporting from subsidiaries requires detailed process descriptions (Schaaper et al 2011;Seal 2001) and some MNCs rely on expatriates to ensure direct reporting lines (Chang et al 2009;Jaussaud and Schaaper 2006;Schaaper et al 2011). MNCs frequently use integrated systems to achieve consistency in reporting (Al Chen et al 1997;Hyvönen et al 2008;Moilanen 2008).…”

Section: Article Characteristicsmentioning

confidence: 99%

“…Most MNCs rely on written manuals, standardized procedures, and job descriptions, to control employee behavior in foreign subsidiaries (Al-Husan and James 2003; Jaussaud and Schaaper 2006;Moilanen 2008) for coordination and efficiency purposes and to ensure adherence to reporting requirements (Moilanen 2008;Schaaper et al 2011). However, the efficiency of process control seems limited when it hinders flexibility (Cools and Slagmulder 2009;Plesner Rossing 2013;Richards and Hu 2003).…”

Section: Process Controlmentioning

confidence: 99%

See 1 more Smart Citation

Management control in multinational companies: a systematic literature review

Sageder

Feldbauer‐Durstmüller

2018

Rev Manag Sci

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Executing management control across borders is crucial for multinational companies (MNCs). Various management control mechanisms serve to align foreign subsidiaries with corporate goals. Management control at MNCs has been subject of numerous studies in the past 25 years, thus highlighting the relevance of the topic. To provide a comprehensive overview of the research field, a systematic literature review including 79 articles from scientific journals has been conducted that outlines various control mechanisms and presents underlying theories as well as development over time. The design of management control and management accounting depends on internal factors at headquarters and the subsidiary as well as on external factors like culture or market requirements. The relationship of headquarters with subsidiaries and the integration into the host country context represent another influence on management control. This paper categorizes influencing factors, discusses interactions and limitations of control mechanisms and suggests implications for practice and research along with avenues for future research.

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Section: Article Characteristicsmentioning

confidence: 99%

Section: Process Controlmentioning

confidence: 99%

Management control in multinational companies: a systematic literature review

Sageder

Feldbauer‐Durstmüller

2018

Rev Manag Sci

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“…As Dowling and Welch (2005) have pointed out, the viability of using expatriate managers within a global organization is becoming debatable with regard to their ability to manage the escalating demands in the global marketplace. Employing inpatriation staff members however, demands a nuanced GTM system to be successfully integrated into global organizations, because the responsibilities carried out by inpatriates are those that are not achievable with expatriate status as they exercise control over foreign operations (Jaussaud & Schaaper, 2006).…”

Section: An Inpatriate Future Research Agendamentioning

confidence: 99%

Global talent management and inpatriate social capital building: a status inconsistency perspective

Moeller

Maley

Harvey

et al. 2015

The International Journal of Human Resource Management

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Distinct to expatriate managers at the subsidiary-level, inpatriate managers' influence at the headquarter (HQ)-level is controlled by the extent to which an inpatriate manager is able to 'win' status from HQ personnel. The primary goal of the paper is to conceptualize how organizational support, in the form of global talent management (GTM) practices, can alleviate inpatriates' difficulties in building social capital at HQ. Building social capital at HQ is vital for inpatriates to attain status in order to build the inter-unit social capital that enables them to pursue their boundary-spanning role across HQs and subsidiaries. Status inconsistency theory is put forward to recognize the personal, professional and structural incongruence of events and activities at HQ carried out with respect to inpatriates. We argue that inpatriate managers become empowered at HQ only when social capital is accumulated whereby social capital is driven by an acknowledgment of inpatriates as a legitimate staffing option. The relationship between GTM practices and social capital building needs to be managed properly by inpatriates themselves as well as by the organization. A future research agenda helping to build social capital of inpatriates through GTM infrastructure is discussed and propositions are offered throughout.

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“…Le risque international a été largement mobilisé dans la littérature en mesurant son influence vis à vis des modes d'entrée sur les marchés étrangers (Brouthers, 1995;Jaussaud et Schaaper, 2006;Abdellatif et al, 2010). Pour Knight (1921), le risque désigne une situation où les probabilités qu'un événement se produise sont connues, par opposition à l'incertitude qui ne permet pas de prédire l'éventualité d'un événement futur sur des bases probabilistes.…”

Section: L'influence Du Risqueunclassified

“…Les données de cette étude ont été collectées à partir d'une enquête en ligne administrée sur la période courant du mois d'avril 2011 à juillet 2011, à l'aide du logiciel LimeSurvey taux obtenus dans ce type d'enquête via Internet (Jaussaud et Schaaper, 2006). L'échantillon final est constitué de 201 maisons mères françaises détenant 469 filiales implantées à travers 69 pays.…”

Section: Echantillon Et Collecte Des Donnéesunclassified

L’influence du risque pays et de la distance culturelle sur les modes de présence et de contrôle des PME à l’étranger

Jean-Amans

Abdellatif

2014

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Cette recherche vise à analyser l’influence du risque pays et de la distance culturelle sur les modes de présence et de contrôle des PME sur leurs filiales. Deux variables relatives à la stratégie d’implantation à l’étranger ont été retenues : le type d’implantation (filiale détenue à 100 % ou coentreprise internationale) et les pratiques d’expatriation. Pour conduire cette étude, une enquête en ligne a été menée par le biais d’une base de données entièrement élaborée et constituée de 2526 PME françaises implantées à l’étranger sous la forme de filiales. Notre contribution montre que le risque pays et la distance culturelle sont associés à la forme de la filiale implantée à l’étranger, mais n’influencent pas les pratiques d’expatriation mobilisées.This research aims to analyze the influence of country risk and cultural distance on entry mode and control of SMEs over their subsidiaries. Two variables reflecting the entry mode were used : type of implantation (wholly-owned subsidiaries and international joint venture) and expatriation practices. To carry out this study, an online survey was conducted through a database constructed by ourselves and consists of 2526 French SMEs located abroad as subsidiaries. Our contribution shows that the country risk and cultural distance associated with the form of the subsidiary located abroad, but do not influence practices of expatriation.Esta investigación tiene como objetivo analizar la influencia del riesgo país y la distancia cultural en los modos de presencia y control de las PYME en sus filiales. Se utilizaron dos variables relacionadas con la estrategia de implantación en el exterior : el tipo de implantación (filial al 100 % y la empresa conjunta internacional) y las prácticas de expatriación. Para llevar a cabo este estudio, una encuesta en línea se realizó a través de una base de datos que hemos totalmente desarrollado y se compone de 2.526 pymes francesas radicadas en el extranjero en forma de filiales. Nuestra contribución demuestra que el riesgo país y la distancia cultural son asociados a la forma de la filial en el extranjero, pero no influyen en las prácticas de expatriación movilizados

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Control mechanisms of their subsidiaries by multinational firms: A multidimensional perspective

Cited by 70 publications

References 26 publications

Management control in multinational companies: a systematic literature review

Management control in multinational companies: a systematic literature review

Global talent management and inpatriate social capital building: a status inconsistency perspective

L’influence du risque pays et de la distance culturelle sur les modes de présence et de contrôle des PME à l’étranger

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