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Patterns of Control in U.S., UK and European Multinational Corporations

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  • William G Egelhoff

    (New York University)

Abstract

This paper examines the type and level of control exercised by the parent headquarters of 50 U.S., UK, and European multinational corporations over their foreign subsidiaries. Pattern of control in the 3 national groups differ in significant ways, and these differences seem to have important implications for other characteristics of a company’s organization design and managerial style.© 1984 JIBS. Journal of International Business Studies (1984) 15, 73–83

Suggested Citation

  • William G Egelhoff, 1984. "Patterns of Control in U.S., UK and European Multinational Corporations," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 15(2), pages 73-83, June.
  • Handle: RePEc:pal:jintbs:v:15:y:1984:i:2:p:73-83
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    Cited by:

    1. Scullion, Hugh & Brewster, Chris, 2001. "The management of expatriates: messages from Europe?," Journal of World Business, Elsevier, vol. 36(4), pages 346-365, January.
    2. Harvey, Michael G. & Richey, R. Glenn, 2001. "Global supply chain management: The selection of globally competent managers," Journal of International Management, Elsevier, vol. 7(2), pages 105-128.
    3. Williams, Christopher & van Triest, Sander, 2009. "The impact of corporate and national cultures on decentralization in multinational corporations," International Business Review, Elsevier, vol. 18(2), pages 156-167, April.
    4. O'Connor, Neale G. & Luo, Yadong & Lee, Danny K. Y., 2001. "Self-selection, socialization and budget control in the PRC: a study of a U.S.-Sino joint venture and Chinese state-owned enterprise," Journal of Business Research, Elsevier, vol. 52(2), pages 135-148, May.
    5. 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.
    6. Schmid, Stefan & Grosche, Philipp & Mayrhofer, Ulrike, 2016. "Configuration and coordination of international marketing activities," International Business Review, Elsevier, vol. 25(2), pages 535-547.
    7. Ewer, Sid R., 1996. "Perceptions of reliances placed on data transmission control measures: Global versus domestic-only private network usage," International Business Review, Elsevier, vol. 5(3), pages 267-282, June.
    8. Fryxell, Gerald E. & Butler, John & Choi, Amanda, 2004. "Successful localization programs in China: an important element in strategy implementation," Journal of World Business, Elsevier, vol. 39(3), pages 268-282, August.
    9. Paik, Yongsun & Sohn, Junghoon Derick, 2004. "Expatriate managers and MNC's ability to control international subsidiaries: the case of Japanese MNCs," Journal of World Business, Elsevier, vol. 39(1), pages 61-71, February.
    10. Santacreu-Vasut, Estefania & Teshima, Kensuke, 2016. "Foreign employees as channel for technology transfer: Evidence from MNC's subsidiaries in Mexico," Journal of Development Economics, Elsevier, vol. 122(C), pages 92-112.
    11. Dimitratos, Pavlos & Liouka, Ioanna & Young, Stephen, 2009. "Regional location of multinational corporation subsidiaries and economic development contribution: Evidence from the UK," Journal of World Business, Elsevier, vol. 44(2), pages 180-191, April.
    12. Alpay, Guven & Bodur, Muzaffer & Ener, Hakan & Talug, Cem, 2005. "Comparing board-level governance at MNEs and local firms: lessons from Turkey," Journal of International Management, Elsevier, vol. 11(1), pages 67-86, March.
    13. Brock, David M., 2005. "Multinational acquisition integration: the role of national culture in creating synergies," International Business Review, Elsevier, vol. 14(3), pages 269-288, June.
    14. Jonas Puck & Markus K. Hödl & Igor Filatotchev & Hans-Georg Wolff & Benjamin Bader, 2016. "Ownership mode, cultural distance, and the extent of parent firms’ strategic control over subsidiaries in the PRC," Asia Pacific Journal of Management, Springer, vol. 33(4), pages 1075-1105, December.
    15. Pan, Yigang & Li, Xiaolian, 1998. "Alliance of foreign firms in equity joint ventures in China," International Business Review, Elsevier, vol. 7(4), pages 329-350, August.
    16. Lee, Ji-Ren & Chen, Wei-Ru & Kao, Charng, 2003. "Determinants and performance impact of asymmetric governance structures in international joint ventures: an empirical investigation," Journal of Business Research, Elsevier, vol. 56(10), pages 815-828, October.
    17. 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.
    18. Drogendijk, Rian & Holm, Ulf, 2012. "Cultural distance or cultural positions? Analysing the effect of culture on the HQ–subsidiary relationship," International Business Review, Elsevier, vol. 21(3), pages 383-396.
    19. Björkman, Anette & Piekkari, Rebecca, 2009. "Language and foreign subsidiary control: An empirical test," Journal of International Management, Elsevier, vol. 15(1), pages 105-117, March.
    20. Ulgado, Francis M., 1997. "Location decision-making characteristics of foreign direct investment in the United States," International Business Review, Elsevier, vol. 6(3), pages 271-293, June.
    21. Andersson, Ulf & Björkman, Ingmar & Forsgren, Mats, 2005. "Managing subsidiary knowledge creation: The effect of control mechanisms on subsidiary local embeddedness," International Business Review, Elsevier, vol. 14(5), pages 521-538, October.
    22. Samiee, Saeed & Athanassiou, Nicholas, 1998. "International Strategy Research: Cross-Cultural Methodology Implications," Journal of Business Research, Elsevier, vol. 43(2), pages 79-96, October.
    23. Egelhoff, William & Frese, Erich, 2009. "Understanding managers' preferences for internal markets versus business planning: A comparative study of German and U.S. managers," Journal of International Management, Elsevier, vol. 15(1), pages 77-91, March.
    24. Peng, George Z. & Beamish, Paul W., 2014. "MNC subsidiary size and expatriate control: Resource-dependence and learning perspectives," Journal of World Business, Elsevier, vol. 49(1), pages 51-62.

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