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The Use of Process and Output Controls in Foreign Markets

Author

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  • Esra F Gencturk

    (The University of Texas at Austin)

  • Preet S Aulakh

    (Memorial University of Newfoundland)

Abstract

This study builds upon previous control research to purpose a model of formal controls used in managing activities performed in foreign markets. Theoretically derived contingency relationships are also proposed to assess the performance consequences of different formal control types. The findings support the importance of internal and external sources of uncertainty in determining the type of control used. Partial support was also found for the premise that the fit between the type of control used and the type of uncertainty perceived will contribute to superior performance.© 1995 JIBS. Journal of International Business Studies (1995) 26, 755–786

Suggested Citation

  • Esra F Gencturk & Preet S Aulakh, 1995. "The Use of Process and Output Controls in Foreign Markets," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 26(4), pages 755-786, December.
    • Handle: RePEc:pal:jintbs:v:26:y:1995:i:4:p:755-786
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    Cited by:

    1. Elodie Gardet & Caroline Danièle Mothe, 2011. "The dynamics of coordination in innovation networks," Post-Print hal-00919245, HAL.
    2. Per Erik Eriksson, 2006. "Procurement and Governance Management ? Development of a Conceptual Procurement Model Based on Different Types of Control," management revue - Socio-Economic Studies, Nomos Verlagsgesellschaft mbH & Co. KG, vol. 17(1), pages 30-49.
    3. Cao, Mingchun & Alon, Ilan, 2021. "Overcoming the liability of foreignness – A new perspective on Chinese MNCs," Journal of Business Research, Elsevier, vol. 128(C), pages 611-626.
    4. Martina Sageder & Birgit Feldbauer-Durstmüller, 2019. "Management control in multinational companies: a systematic literature review," Review of Managerial Science, Springer, vol. 13(5), pages 875-918, November.
    5. Thomas Gackstatter & Benedikt Müller-Stewens & Klaus Möller, 2019. "Effective accounting processes: the role of formal and informal controls," Journal of Management Control: Zeitschrift für Planung und Unternehmenssteuerung, Springer, vol. 30(2), pages 131-152, July.
    6. Juan Manuel Ramon-Jeronimo & Raquel Florez-Lopez & Pedro Araujo-Pinzon, 2019. "Resource-Based View and SMEs Performance Exporting through Foreign Intermediaries: The Mediating Effect of Management Controls," Sustainability, MDPI, vol. 11(12), pages 1-26, June.
    7. Holger Patzelt & Dean A. Shepherd, 2008. "The Decision to Persist with Underperforming Alliances: The Role of Trust and Control," Journal of Management Studies, Wiley Blackwell, vol. 45(7), pages 1217-1243, November.
    8. Lovett, Steven Russell & Pérez-Nordtvedt, Liliana & Rasheed, Abdul A., 2009. "Parental control: A study of U.S. subsidiaries in Mexico," International Business Review, Elsevier, vol. 18(5), pages 481-493, October.
    9. Phillip C. Nell & Philip Kappen & Tomi Laamanen, 2017. "Reconceptualising Hierarchies: The Disaggregation and Dispersion of Headquarters in Multinational Corporations," Journal of Management Studies, Wiley Blackwell, vol. 54(8), pages 1121-1143, December.
    10. Yang, Feifei & Shinkle, George A. & Goudsmit, Mirjam, 2022. "The efficacy of organizational control interactions: External environmental uncertainty as a critical contingency," Journal of Business Research, Elsevier, vol. 139(C), pages 855-868.
    11. Gabriel Ogunmokun & Ling-yee Li, 2001. "Marketing Control and Export Success: An Exploratory Study of Exporting Firms in the People's Republic of China," Global Business Review, International Management Institute, vol. 2(2), pages 167-176, August.
    12. Paswan, Audhesh K. & Dant, Rajiv P. & Lumpkin, James R., 1998. "An Empirical Investigation of the Linkages among Relationalism, Environmental Uncertainty, and Bureaucratization," Journal of Business Research, Elsevier, vol. 43(3), pages 125-140, November.
    13. Pahud de Mortanges, Charles & Vossen, Joost, 1999. "Mechanisms to control the marketing activities of foreign distributors," International Business Review, Elsevier, vol. 8(1), pages 75-97, January.
    14. Yu, Chwo-Ming Joseph & Wong, Huang-Che & Chiao, Yu-Ching, 2006. "Local linkages and their effects on headquarters' use of process controls," Journal of Business Research, Elsevier, vol. 59(12), pages 1239-1247, November.
    15. Klara Granheimer & Per-Erik Eriksson & Tina Karrbom Gustavsson, 2022. "Adaptability in Public Procurement of Engineering Services Promoting Carbon Reduction: An Organizational Control Perspective," Sustainability, MDPI, vol. 14(10), pages 1-18, May.
    16. Lukas Isenberg & Susanne Kreiter & Roland Helm & Christian Schmitz, 2022. "Marketing control in international headquarters-subsidiary working relationships of industrial goods firms: the role of environmental context," Journal of Business Economics, Springer, vol. 92(6), pages 1035-1064, August.
    17. Attila Yaprak & Shichun Xu & Erin Cavusgil, 2011. "Effective Global Strategy Implementation," Management International Review, Springer, vol. 51(2), pages 179-192, April.
    18. Jetta Frost & Rick Vogel & Khaled Bagban, 2016. "Managing Interdependence in Multi-business Organizations," Schmalenbach Business Review, Springer;Schmalenbach-Gesellschaft, vol. 17(2), pages 225-260, August.
    19. Roath, A. S. & Miller, S. R. & Cavusgil, S. T., 2002. "A conceptual framework of relational governance in foreign distributor relationships," International Business Review, Elsevier, vol. 11(1), pages 1-16, February.
    20. Barbara Brenner & Björn Ambos, 2013. "A Question of Legitimacy? A Dynamic Perspective on Multinational Firm Control," Organization Science, INFORMS, vol. 24(3), pages 773-795, June.
    21. Sachdev, Harash J. & Bello, Daniel C., 2014. "The effect of transaction cost antecedents on control mechanisms: Exporters’ psychic distance and economic knowledge as moderators," International Business Review, Elsevier, vol. 23(2), pages 440-454.
    22. Chun-Chien Lin & Yu-Ching Chiao & Tung-Lung Chang & Yu-Chen Chang, 2023. "The determinants of the use of process control mechanisms in FDI decisions in headquarters–subsidiary relationships," Palgrave Communications, Palgrave Macmillan, vol. 10(1), pages 1-14, December.
    23. Nakos, George & Brouthers, Keith D., 2008. "International alliance commitment and performance of small and medium-size enterprises: The mediating role of process control," Journal of International Management, Elsevier, vol. 14(2), pages 124-137, June.
    24. Yuri Gorbaneff & Juan Manuel González & Leonardo Barón, 2011. "¿para qué sirve la interventoría de las obras públicas en Colombia?," Revista de Economía Institucional, Universidad Externado de Colombia - Facultad de Economía, vol. 13(24), pages 413-428, January-J.

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