Control Differentiation, Resource Sharing And Performance Of Business Units
AbstractScholars in strategy and in international management emphasize that a fit between the context of a business unit and corporate control mechanisms enhances the performance of both the individual business unit and corporations as a whole. However, the negative implications of control differentiation across business units within a corporation have not been thoroughly studied. We use insights from procedural justice literature to assert that perceived control differentiation may be problematic when the success of a business unit depends on resource sharing with other units in a corporation. Data of 136 business units in 45 Dutch multidivisional firms support our assertion.
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Bibliographic InfoArticle provided by LMU Munich School of Management in its journal Schmalenbach Business Review.
Volume (Year): 57 (2005)
Issue (Month): 4 (October)
Control Differentiation; Performance; Procedural Justice; Resource Sharing;
Find related papers by JEL classification:
- L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure
- M10 - Business Administration and Business Economics; Marketing; Accounting - - Business Administration - - - General
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- Lin, Shao-Lung & Hsieh, An-Tien, 2010. "International strategy implementation: Roles of subsidiaries, operational capabilities, and procedural justice," Journal of Business Research, Elsevier, vol. 63(1), pages 52-59, January.
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