IDEAS home Printed from https://ideas.repec.org/a/eee/intman/v12y2006i1p23-45.html
   My bibliography  Save this article

Control mechanisms of their subsidiaries by multinational firms: A multidimensional perspective

Author

Listed:
  • Jaussaud, Jacques
  • Schaaper, Johannes

Abstract

Multinational companies use a wide range of mechanisms to keep control over a subsidiary abroad such as the share of capital in the case of international joint ventures, expatriation, active participation in the board of directors, staffing key management positions, training and socialization of employees, technology transfer, and so on. However, only a few empirical studies on the control of international subsidiaries embrace all these dimensions simultaneously and show how they interact. This paper presents the empirical results of a quantitative survey of 316 subsidiaries, international joint ventures and wholly foreign owned enterprises, set up in China by European and Japanese multinationals. The main objective of the survey is to bring out an inductive multidimensional model of control, and to allow a better understanding of complex interaction and balance between the instruments of control of a subsidiary abroad.

Suggested Citation

  • Jaussaud, Jacques & Schaaper, Johannes, 2006. "Control mechanisms of their subsidiaries by multinational firms: A multidimensional perspective," Journal of International Management, Elsevier, vol. 12(1), pages 23-45, March.
  • Handle: RePEc:eee:intman:v:12:y:2006:i:1:p:23-45
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1075425306000068
    Download Restriction: Full text for ScienceDirect subscribers only

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. J Michael Geringer & Louis Hebert, 1989. "Control and Performance of International Joint Ventures," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 20(2), pages 235-254, June.
    2. Yadong Luo & Oded Shenkar & Mee-Kau Nyaw, 2001. "A Dual Parent Perspective on Control and Performance in International Joint Ventures: Lessons From a Developing Economy," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 32(1), pages 41-58, March.
    3. Luo, Yadong, 2001. "Equity sharing in international joint ventures: an empirical analysis of strategic and environmental determinants," Journal of International Management, Elsevier, vol. 7(1), pages 31-58.
    4. Jon I Martinez & J Carlos Jarillo, 1991. "Coordination Demands of International Strategies," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 22(3), pages 429-444, September.
    5. Zhao, Hongxin & Zhu, Gangti, 1998. "Determinants of ownership preference of international joint ventures: new evidence from Chinese manufacturing industries," International Business Review, Elsevier, vol. 7(6), pages 569-589, November.
    6. Jean-François Hennart, 1991. "The Transaction Costs Theory of Joint Ventures: An Empirical Study of Japanese Subsidiaries in the United States," Management Science, INFORMS, vol. 37(4), pages 483-497, April.
    7. Zhang, Yan & Li, Haiyang, 2001. "The control design and performance in international joint ventures: a dynamic evolution perspective," International Business Review, Elsevier, vol. 10(3), pages 341-362, June.
    8. Aimin Yan, 2001. "Antecedents and Effects of Parent Control in International Joint Ventures," Journal of Management Studies, Wiley Blackwell, vol. 38(3), pages 393-416, May.
    9. 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.
    10. Jon I Martinez & J Carlos Jarillo, 1989. "The Evolution of Research on Coordination Mechanisms in Multinational Corporations," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 20(3), pages 489-514, September.
    11. Groot, Tom L. C. M. & Merchant, Kenneth A., 2000. "Control of international joint ventures," Accounting, Organizations and Society, Elsevier, vol. 25(6), pages 579-607, August.
    12. Child, John & Yan, Yanni, 1999. "Investment and control in international joint ventures: the case of China," Journal of World Business, Elsevier, vol. 34(1), pages 3-15, April.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Abdellatif, Mahamat & Amann, Bruno & Jaussaud, Jacques, 2010. "Family versus nonfamily business: A comparison of international strategies," Journal of Family Business Strategy, Elsevier, vol. 1(2), pages 108-116, June.
    2. Schmid, Stefan & Grosche, Philipp & Mayrhofer, Ulrike, 2016. "Configuration and coordination of international marketing activities," International Business Review, Elsevier, vol. 25(2), pages 535-547.
    3. Jell-Ojobor, Maria & Windsperger, Josef, 2014. "The Choice of Governance Modes of International Franchise Firms — Development of an Integrative Model," Journal of International Management, Elsevier, vol. 20(2), pages 153-187.
    4. Victor Oltra & Jaime Bonache & Chris Brewster, 2013. "A New Framework for Understanding Inequalities Between Expatriates and Host Country Nationals," Journal of Business Ethics, Springer, vol. 115(2), pages 291-310, June.
    5. J. Windsperger, 2009. "Allocation of decision rights in joint ventures," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 30(8), pages 491-501.
    6. Du, Yan & Deloof, Marc & Jorissen, Ann, 2015. "The Roles of Subsidiary Boards in Multinational Enterprises," Journal of International Management, Elsevier, vol. 21(3), pages 169-181.
    7. repec:bla:acctfi:v:56:y:2016:i:4:p:1041-1070 is not listed on IDEAS
    8. Christopher Melin, 2011. "Le management de projets des firmes multinationales comme un mécanisme de coordination des relations siège-filiales," Post-Print hal-00690839, HAL.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:intman:v:12:y:2006:i:1:p:23-45. 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: (Dana Niculescu). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/601266/description#description .

    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 CitEc recognized a reference but did not link an item in RePEc 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 RePEc Author Service 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.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.