Multinational Corporations: Control Systems and Delegation Issues

Baliga, B. R.; Jaeger, Alfred M.

doi:10.1057/palgrave.jibs.8490480

Cited by 285 publications

(170 citation statements)

References 46 publications

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“…also concluded that cultural distance is one of the major cause for value destruction in M&As. Balgia and Jaeger (1984) suggested that cultural control is an effective way for a parent firm to control a subsidiary.…”

Section: Literature Review and Propositionsmentioning

confidence: 99%

Linguistic gender marking gap and female staffing at MNC’s

Malul

Shoham

Uddin

2016

The International Journal of Human Resource Management

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This paper presents the impact of the linguistic gender marking gap on expatriate female staffing decisions in a multinational company. Transaction cost theory postulates that due to cultural differences, integration between parent and subsidiary companies becomes complex and costly. However, staffing from parent organisations could be helpful to minimise the cultural conflict by establishing better control and hence reducing the transaction cost. Language is considered one of the major components that shapes culture, and linguistic gender marking gap could cause a difference in attitude towards male and female staff members from parent companies.Due to the nature of linguistic structures, which are embedded in ancestral culture and have a cognitive effect on speakers, the gap has two levels. The first is the gap between home and host countries' languages. The second is between the official and informal languages used by the headquarters and the subsidiary. The analytical model, using an innovative gender gap variable, supports two carefully developed propositions, that the success of expatriate staffing at managerial level depends on the linguistic gender marking gap between home and host country, and that use of organisational language in subsidiaries reduces the linguistic gender marking gap between them.2

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Section: Literature Review and Propositionsmentioning

confidence: 99%

Linguistic gender marking gap and female staffing at MNC’s

Malul

Shoham

Uddin

2016

The International Journal of Human Resource Management

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“…The theoretical field of business ethics leads to the important question of the conduct of multinationals working abroad, when the socio-environmental standards of the host country are lower than those of the country supplying the capital. This issue is linked to the one discussed above, that is, to the headquarters-subsidiary approach (or the centre-periphery approach) to investments, wherein the integration of multinationals depends mainly on the two processes of control and headquarterssubsidiary coordination (Baliga and Jaeger, 1984;Roth and Nigh, 1992).…”

Section: Conceptual Frameworkmentioning

confidence: 99%

What Happens When Corporate Ownership Shifts to China? A Case Study on Rubber Production in Cameroon

Assembe-Mvondo¹,

Cerutti²,

Putzel³

et al. 2015

Eur J Dev Res

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This article seeks to understand the evolution of corporate social responsibility (CSR) through two phases of privatisation: the acquisition of a Cameroonian state-owned public rubber company by a Singaporean firm, and the subsequent acquisition of the latter by a Chinese state-owned company. The investigation revealed that a number of unresolved problems, including uncompensated land, dispossession by the government, failure to fulfil a promise of vesting a proportion of the company's capital with employees and a history of unsatisfactory employment conditions, were passed on to two generations of multinational owners. Although there are preliminary indications that the Chinese investors may have a stronger interest in reforming and rejuvenating the company, from increasing production and efficiency to applying CSR standards, it remains to be seen whether the sector will bring greater benefits to local communities and employees given the entrenched nature of pre-existing shortcomings.Cet article cherche à comprendre l'évolution de la responsabilité sociale d'entreprise lors de deux phases de privatisation, lorsqu'une entreprise publique de caoutchouc a été rachetée par une entreprise singapourienne, qui a elle-même été rachetée par une entreprise d'Etat chinoise. La recherche a révélé que deux générations de propriétaires internationaux ont hérité d'un certain nombre de problèmes non-résolus, tels que la prise de possession des terres par le gouvernement sans compensation, le manquement à la promesse de remettre une part du capital de la compagnie aux employés, ainsi qu'un passé de conditions d'emploi non-satisfaisantes. Certains indices préliminaires montrent que les investisseurs Chinois pourraient avoir un intérêt plus fort dans la réforme et la revitalisation de la compagnie, que ce soit pour l'accroissement de la production et de l'efficience, ou pour appliquer les standards de responsabilité sociale d'entreprise. Cependant, il reste à prouver que le secteur bénéficiera plus largement les communautés locales et les employés, au vu des problèmes pré-existants bien ancrés.

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“…Control involves ascertaining whether an action has been successfully executed and dealing with deviations and unforeseen events in order to cope positively with them (Baliga and Jaeger, 1984;Henderson and Lee, 1992;Ouchi, 1979;Ouchi and Maguire, 1975). In one form of SA, the principal gives up control once the decision has been delegated to the agent (Milewski and Lewis, 1997).…”

Section: Software Agentsmentioning

confidence: 99%

The Buck Stops There: The Impact of Perceived Accountability and Control on the Intention to Delegate to Software Agents

Stout¹,

Dennis²,

Wells³

2014

THCI

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Software agents with the ability to recommend actions, aid decision-making, and actually make decisions are becoming increasingly common. In many situations, users now choose whether or not to delegate tasks to these agents. While some research has examined software agents, relatively little is known about the factors that influence the intention to delegate decisions to them. An experiment was used to examine the influence of perceived accountability, extent of control, and trust in the agent on the intention to delegate a travel arrangement decision. Users were more likely to delegate to agents that gave them greater control by requiring them to approve the agent's recommendation before the decision was completed than to agents that performed the task autonomously without intervention after it was delegated. Contrary to expectations, intention to delegate increased as perceived accountability increased. Participants may perceive delegation as a means to shift blame from themselves to the agent and thus mitigate risk resulting from potential negative decision outcomes.

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Multinational Corporations: Control Systems and Delegation Issues

Cited by 285 publications

References 46 publications

Linguistic gender marking gap and female staffing at MNC’s

Linguistic gender marking gap and female staffing at MNC’s

What Happens When Corporate Ownership Shifts to China? A Case Study on Rubber Production in Cameroon

The Buck Stops There: The Impact of Perceived Accountability and Control on the Intention to Delegate to Software Agents

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