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Control exercised by U.S. multinationals over their overseas affiliates: does location make a difference?

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  • Richards, Malika

Abstract

Using data collected through personal interviews with senior managers at U.S. multinational headquarters and their U.K., Thai, Malaysian, and Singaporean affiliates, this study examines whether U.S. multinationals adjust the amount of control they use over their culturally different overseas affiliates. Results showed no overall difference in the amount of control that U.S. multinationals exercise over their U.K. and Southeast Asian affiliates. However, differences emerged between these two cultural groups when industry and affiliate top manager type were taken into account. In particular, U.K. locally run affiliates were given significantly more autonomy than their Southeast Asian counterparts. Locally run affiliates in both countries were also given significantly greater autonomy than were expatriate-run ones. Consumer goods affiliates in Southeast Asia enjoyed more autonomy than the industrial affiliates did.

Suggested Citation

  • 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.
  • Handle: RePEc:eee:intman:v:6:y:2000:i:2:p:105-120
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    References listed on IDEAS

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    Cited by:

    1. Panina, Daria & Aiello, John R., 2005. "Acceptance of electronic monitoring and its consequences in different cultural contexts: A conceptual model," Journal of International Management, Elsevier, vol. 11(2), pages 269-292, June.
    2. Kothari, Tanvi & Lahiri, Somnath, 2012. "Yesterday, today and tomorrow: An overview of research publications in the Journal of International Management," Journal of International Management, Elsevier, vol. 18(1), pages 102-110.
    3. 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.
    4. repec:eee:iburev:v:26:y:2017:i:3:p:461-475 is not listed on IDEAS
    5. Gaffney, Nolan & Karst, Rusty & Clampit, Jack, 2016. "Emerging market MNE cross-border acquisition equity participation: The role of economic and knowledge distance," International Business Review, Elsevier, vol. 25(1), pages 267-275.
    6. Malhotra, Shavin & Sivakumar, K. & Zhu, PengCheng, 2011. "Curvilinear relationship between cultural distance and equity participation: An empirical analysis of cross-border acquisitions," Journal of International Management, Elsevier, vol. 17(4), pages 316-332.
    7. Gnyawali, Devi R. & Singal, Manisha & Mu, Shaohua Carolyn, 2009. "Knowledge ties among subsidiaries in MNCs: A multi-level conceptual model," Journal of International Management, Elsevier, vol. 15(4), pages 387-400, December.

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