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Control Differentiation, Resource Sharing And Performance Of Business Units

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  • Eric Dooms
  • Aswin van Oijen
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    Abstract

    Scholars 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 Info

    Article provided by LMU Munich School of Management in its journal Schmalenbach Business Review.

    Volume (Year): 57 (2005)
    Issue (Month): 4 (October)
    Pages: 320-331

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    Handle: RePEc:sbr:abstra:v:57:y:2005:i:4:320-331

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    Related research

    Keywords: Control Differentiation; Performance; Procedural Justice; Resource Sharing;

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    Cited by:
    1. 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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