The influence of subsidiary context and head office strategic management style on control of MNCs

The experience in Australia

Lai Hong Chung, Patrick T. Gibbons, Herbert P. Schoch

Research output: Contribution to journalArticle

25 Citations (Scopus)

Abstract

This study examines the control issues related to three major flows among MNC subsidiaries: knowledge flows, product flows and capital flows. It also investigates the relationship between the strategic management style of headquarters and the control approaches employed. The results show the dominance of output control, even in situations where researchers have argued that they should not be relied upon. The study also found that as knowledge flow increases, reliance on financial control decreases and reliance on socialisation control increases. Consistent with other studies, the dominant management style is the strategic control style, while the least popular is the financial control style. The paper calls for using alternative theoretical lenses, such as institutional theory, to provide additional insights not available through the contingency lens.

Original languageEnglish
Pages (from-to)647-668
Number of pages22
JournalAccounting, Auditing and Accountability Journal
Volume13
Issue number5
DOIs
Publication statusPublished - 1 Dec 2000

Keywords

  • Control
  • Institutional analysis
  • Knowledge management
  • Management styles
  • Multinationals
  • Strategic management

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