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Control Differentiation, Resource Sharing And Performance Of Business Units

Author

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  • Eric Dooms
  • Aswin van Oijen

Abstract

Scholars in strategy and in international management emphasize that a fit between the context of a business unit and corporate control mechanisms enhances the performance of both the individual business unit and corporations as a whole. However, the negative implications of control differentiation across business units within a corporation have not been thoroughly studied. We use insights from procedural justice literature to assert that perceived control differentiation may be problematic when the success of a business unit depends on resource sharing with other units in a corporation. Data of 136 business units in 45 Dutch multidivisional firms support our assertion.

Suggested Citation

  • Eric Dooms & Aswin van Oijen, 2005. "Control Differentiation, Resource Sharing And Performance Of Business Units," Schmalenbach Business Review (sbr), LMU Munich School of Management, vol. 57(4), pages 320-331, October.
  • Handle: RePEc:sbr:abstra:v:57:y:2005:i:4:320-331
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    Cited by:

    1. Lin, Shao-Lung & Hsieh, An-Tien, 2010. "International strategy implementation: Roles of subsidiaries, operational capabilities, and procedural justice," Journal of Business Research, Elsevier, vol. 63(1), pages 52-59, January.

    More about this item

    Keywords

    Control Differentiation; Performance; Procedural Justice; Resource Sharing;

    JEL classification:

    • L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure
    • M10 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - General

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