Control of French and Japanese subsidiaries in China: implementing control mechanisms before and after the global economic crisis

Schaaper, Johannes; Mizoguchi, Shuji; Nakamura, Hiroyuki; Yamashita, Seiki

doi:10.1080/13602381.2011.546626

Cited by 23 publications

(25 citation statements)

References 43 publications

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“…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%

“…Employing a high number of expatriates as a means of control indicates that headquarters execute tight subsidiary control (Chung et al 2000;Neves and Bugalho 2008;Richards 2000). Despite the associated high costs, expatriates are a widespread mechanism of social control (Chung et al 2006;Schaaper et al 2011). Though, only expatriates with appropriate knowledge of the host country culture contribute positively to MC at foreign subsidiaries (Paik and Sohn 2004).…”

Section: Social Controlmentioning

confidence: 99%

“…Particularly, when entering a foreign country, trainings assist managers in building networks and spreading corporate values and strategies throughout the MNC (Al-Husan and James 2003; Brenner and Ambos 2013). To some extent, training substitutes expatriates for cost-efficiency reasons (Schaaper et al 2011). Overall, social mechanisms seem to be used in a less targeted way than process or output control for monitoring foreign subsidiaries (Fee et al 2011) and variations between MNCs in the application of these mechanisms are high (Martinez and Jarillo 1991).…”

Section: Social Controlmentioning

confidence: 99%

“…Centralized MNCs place high emphasis on the transfer of the corporate culture to the subsidiaries (Al-Husan and James 2003; Williams and van Triest 2009). Introducing management information systems allows permanent information flow, which is essential for a centralized coordination of MNCs (Chang et al 2009;Hyvönen et al 2008;Schaaper et al 2011). These systems allow real-time monitoring and coordination worldwide, which either reinforce centralization tendencies (Finnegan and Ni Longaigh 2002;Hyvönen et al 2008;Quattrone and Hopper 2005) or strengthen local responsiveness (Al-Husan and James 2003;Finnegan and Ni Longaigh 2002;Quattrone and Hopper 2005).…”

Section: Process Controlmentioning

confidence: 99%

“…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%

See 4 more Smart Citations

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: Process Controlmentioning

confidence: 99%

Section: Social Controlmentioning

confidence: 99%

Section: Social Controlmentioning

confidence: 99%

Section: Process Controlmentioning

confidence: 99%

Section: Article Characteristicsmentioning

confidence: 99%

See 3 more Smart Citations

Management control in multinational companies: a systematic literature review

Sageder

Feldbauer‐Durstmüller

2018

Rev Manag Sci

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Human resource management and industrial relations in multinational corporations in and from China: Challenges and new insights

Cooke

Liu

et al. 2019

Human Resource Management

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The purpose of this article is to provide an overview on the state of research in the field in human resource management (HRM) issues in multinational corporations (MNCs) in and from China. We integrate previous studies from multiple disciplines to articulate the contextual importance of research on this topic, and suggest overarching themes to expand the field of research. HRM research in the intercultural, interinstitutional context of MNCs in and from China has the potential to provide contextualized insights for longstanding debates in the field such as HRM standardization versus localization and convergence versus divergence and contextual factors behind these patterns. To this end, we call for future research to center on the changing cultural, institutional, technological, and globalization context in understanding HRM and industrial relations issues in these MNCs. Practically, knowledge in this area can help global managers and top management teams in multinational organizations navigate various context complexity, foster more productive coordination and cooperation across borders, and gain legitimacy and MNCs in and from China additional competitive edge in the global marketplace.

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Control and Coordination of Chinese Subsidiaries in France

Schaaper

Gao

2018

Asian Nations and Multinationals

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Control of French and Japanese subsidiaries in China: implementing control mechanisms before and after the global economic crisis

Cited by 23 publications

References 43 publications

Management control in multinational companies: a systematic literature review

Management control in multinational companies: a systematic literature review

Human resource management and industrial relations in multinational corporations in and from China: Challenges and new insights

Control and Coordination of Chinese Subsidiaries in France

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