Parental control: A study of U.S. subsidiaries in Mexico
This study develops a framework that suggests that subsidiary characteristics, such as performance, purpose and manager nationality affect the extent of control and mechanisms of control (i.e., results, cultural and action controls) that their parent companies exercise over them. Hypotheses were tested using survey responses from 44 Mexican subsidiary--U.S. parent dyads. As expected, results suggest that parental perceptions of subsidiary performance are inversely related to the extent of control that parent companies exercise over these subsidiaries. It was also found that subsidiaries established for purposes relating to a knowledge seeking motivation tended to be subject to more cultural control, but no support was found for the hypothesized relationships between market purpose and results control, and resource purpose and action control. Finally, also as predicted, Mexican managers tended to be subject to greater action control by their U.S. parent than American managers.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Volume (Year): 18 (2009)
Issue (Month): 5 (October)
|Contact details of provider:|| Web page: http://www.elsevier.com/wps/find/journaldescription.cws_home/133/description#description|
|Order Information:|| Postal: http://www.elsevier.com/wps/find/journaldescription.cws_home/133/bibliographic|
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- David Cray, 1984. "Control and Coordination in Multinational Corporations," Journal of International Business Studies, Palgrave Macmillan, vol. 15(2), pages 85-98, June.
- B R Baliga & Alfred M Jaeger, 1984. "Multinational Corporations: Control Systems and Delegation Issues," Journal of International Business Studies, Palgrave Macmillan, vol. 15(2), pages 25-40, June.
- Kendall Roth & Allen J Morrison, 1992. "Implementing Global Strategy: Characteristics of Global Subsidiary Mandates," Journal of International Business Studies, Palgrave Macmillan, vol. 23(4), pages 715-735, December.
- Esra F Gencturk & Preet S Aulakh, 1995. "The Use of Process and Output Controls in Foreign Markets," Journal of International Business Studies, Palgrave Macmillan, vol. 26(4), pages 755-786, December.
- Govindarajan, V. & Gupta, Anil K., 1985. "Linking control systems to business unit strategy: impact on performance," Accounting, Organizations and Society, Elsevier, vol. 10(1), pages 51-66, January.
- Arie Y. Lewin & John W. Minton, 1986. "Determining Organizational Effectiveness: Another Look, and an Agenda for Research," Management Science, INFORMS, vol. 32(5), pages 514-538, May.
- Bernard L Simonin, 1999. "Transfer of Marketing Know-How in International Strategic Alliances: An Empirical Investigation of the Role and Antecedents of Knowledge Ambiguity," Journal of International Business Studies, Palgrave Macmillan, vol. 30(3), pages 463-490, September.
- Lorraine Eden & Stefanie Lenway, 2001. "Introduction to the Symposium Multinationals: The Janus Face of Globalization*," Journal of International Business Studies, Palgrave Macmillan, vol. 32(3), pages 383-400, September.
- Abernethy, Margaret A. & Lillis, Anne M., 1995. "The impact of manufacturing flexibility on management control system design," Accounting, Organizations and Society, Elsevier, vol. 20(4), pages 241-258, May.
- J Michael Geringer & Louis Hebert, 1989. "Control and Performance of International Joint Ventures," Journal of International Business Studies, Palgrave Macmillan, vol. 20(2), pages 235-254, June.
- Roth, Kendall & Nigh, Douglas, 1992. "The effectiveness of headquarters-subsidiary relationships: The role of coordination, control, and conflict," Journal of Business Research, Elsevier, vol. 25(4), pages 277-301, December.
- Wilbur Chung & Juan Alcácer, 2002. "Knowledge Seeking and Location Choice of Foreign Direct Investment in the United States," Management Science, INFORMS, vol. 48(12), pages 1534-1554, December.
- Jon I Martinez & J Carlos Jarillo, 1989. "The Evolution of Research on Coordination Mechanisms in Multinational Corporations," Journal of International Business Studies, Palgrave Macmillan, vol. 20(3), pages 489-514, September.
- Paterson, S. L. & Brock, D. M., 2002. "The development of subsidiary-management research: review and theoretical analysis," International Business Review, Elsevier, vol. 11(2), pages 139-163, April.
- J Michael Geringer & Louis Hebert, 1991. "Measuring Performance of International Joint Ventures," Journal of International Business Studies, Palgrave Macmillan, vol. 22(2), pages 249-263, June.
- Flamholtz, Eric G. & Das, T. K. & Tsui, Anne S., 1985. "Toward an integrative framework of organizational control," Accounting, Organizations and Society, Elsevier, vol. 10(1), pages 35-50, January.
- Chow, Chee W. & Kato, Yutaka & Merchant, Kenneth A., 1996. "The use of organizational controls and their effects on data manipulation and management myopia: A Japan vs U.S. comparison," Accounting, Organizations and Society, Elsevier, vol. 21(2-3), pages 175-192.
- William G. Ouchi, 1979. "A Conceptual Framework for the Design of Organizational Control Mechanisms," Management Science, INFORMS, vol. 25(9), pages 833-848, September.
When requesting a correction, please mention this item's handle: RePEc:eee:iburev:v:18:y:2009:i:5:p:481-493. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.