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Patterns of Control in U.S., UK and European Multinational Corporations

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  • William G Egelhoff

    (New York University)

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    Abstract

    This paper examines the type and level of control exercised by the parent headquarters of 50 U.S., UK, and European multinational corporations over their foreign subsidiaries. Pattern of control in the 3 national groups differ in significant ways, and these differences seem to have important implications for other characteristics of a company’s organization design and managerial style.© 1984 JIBS. Journal of International Business Studies (1984) 15, 73–83

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    Bibliographic Info

    Article provided by Palgrave Macmillan in its journal Journal of International Business Studies.

    Volume (Year): 15 (1984)
    Issue (Month): 2 (June)
    Pages: 73-83

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    Handle: RePEc:pal:jintbs:v:15:y:1984:i:2:p:73-83

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    Cited by:
    1. Dimitratos, Pavlos & Liouka, Ioanna & Young, Stephen, 2009. "Regional location of multinational corporation subsidiaries and economic development contribution: Evidence from the UK," Journal of World Business, Elsevier, vol. 44(2), pages 180-191, April.
    2. Pan, Yigang & Li, Xiaolian, 1998. "Alliance of foreign firms in equity joint ventures in China," International Business Review, Elsevier, vol. 7(4), pages 329-350, August.
    3. Drogendijk, Rian & Holm, Ulf, 2012. "Cultural distance or cultural positions? Analysing the effect of culture on the HQ–subsidiary relationship," International Business Review, Elsevier, vol. 21(3), pages 383-396.
    4. Brock, David M., 2005. "Multinational acquisition integration: the role of national culture in creating synergies," International Business Review, Elsevier, vol. 14(3), pages 269-288, June.
    5. Richards, Malika, 2000. "Control exercised by U.S. multinationals over their overseas affiliates: does location make a difference?," Journal of International Management, Elsevier, vol. 6(2), pages 105-120.
    6. O'Connor, Neale G. & Luo, Yadong & Lee, Danny K. Y., 2001. "Self-selection, socialization and budget control in the PRC: a study of a U.S.-Sino joint venture and Chinese state-owned enterprise," Journal of Business Research, Elsevier, vol. 52(2), pages 135-148, May.
    7. Fryxell, Gerald E. & Butler, John & Choi, Amanda, 2004. "Successful localization programs in China: an important element in strategy implementation," Journal of World Business, Elsevier, vol. 39(3), pages 268-282, August.
    8. Williams, Christopher & van Triest, Sander, 2009. "The impact of corporate and national cultures on decentralization in multinational corporations," International Business Review, Elsevier, vol. 18(2), pages 156-167, April.
    9. Ulgado, Francis M., 1997. "Location decision-making characteristics of foreign direct investment in the United States," International Business Review, Elsevier, vol. 6(3), pages 271-293, June.
    10. Lee, Ji-Ren & Chen, Wei-Ru & Kao, Charng, 1998. "Bargaining power and the trade-off between the ownership and control of international joint ventures in China," Journal of International Management, Elsevier, vol. 4(4), pages 353-385, December.
    11. Scullion, Hugh & Brewster, Chris, 2001. "The management of expatriates: messages from Europe?," Journal of World Business, Elsevier, vol. 36(4), pages 346-365, January.
    12. Andersson, Ulf & Björkman, Ingmar & Forsgren, Mats, 2005. "Managing subsidiary knowledge creation: The effect of control mechanisms on subsidiary local embeddedness," International Business Review, Elsevier, vol. 14(5), pages 521-538, October.
    13. Lee, Ji-Ren & Chen, Wei-Ru & Kao, Charng, 2003. "Determinants and performance impact of asymmetric governance structures in international joint ventures: an empirical investigation," Journal of Business Research, Elsevier, vol. 56(10), pages 815-828, October.
    14. Alpay, Guven & Bodur, Muzaffer & Ener, Hakan & Talug, Cem, 2005. "Comparing board-level governance at MNEs and local firms: lessons from Turkey," Journal of International Management, Elsevier, vol. 11(1), pages 67-86, March.
    15. Harvey, Michael G. & Richey, R. Glenn, 2001. "Global supply chain management: The selection of globally competent managers," Journal of International Management, Elsevier, vol. 7(2), pages 105-128.
    16. Egelhoff, William & Frese, Erich, 2009. "Understanding managers' preferences for internal markets versus business planning: A comparative study of German and U.S. managers," Journal of International Management, Elsevier, vol. 15(1), pages 77-91, March.
    17. Paik, Yongsun & Sohn, Junghoon Derick, 2004. "Expatriate managers and MNC's ability to control international subsidiaries: the case of Japanese MNCs," Journal of World Business, Elsevier, vol. 39(1), pages 61-71, February.
    18. Peng, George Z. & Beamish, Paul W., 2014. "MNC subsidiary size and expatriate control: Resource-dependence and learning perspectives," Journal of World Business, Elsevier, vol. 49(1), pages 51-62.
    19. Björkman, Anette & Piekkari, Rebecca, 2009. "Language and foreign subsidiary control: An empirical test," Journal of International Management, Elsevier, vol. 15(1), pages 105-117, March.
    20. Ewer, Sid R., 1996. "Perceptions of reliances placed on data transmission control measures: Global versus domestic-only private network usage," International Business Review, Elsevier, vol. 5(3), pages 267-282, June.
    21. Samiee, Saeed & Athanassiou, Nicholas, 1998. "International Strategy Research: Cross-Cultural Methodology Implications," Journal of Business Research, Elsevier, vol. 43(2), pages 79-96, October.

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