TY - JOUR
T1 - The influence of subsidiary context and head office strategic management style on control of MNCs
T2 - The experience in Australia
AU - Hong Chung, Lai
AU - Gibbons, Patrick T.
AU - Schoch, Herbert P.
PY - 2000/12/1
Y1 - 2000/12/1
N2 - 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.
AB - 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.
KW - Control
KW - Institutional analysis
KW - Knowledge management
KW - Management styles
KW - Multinationals
KW - Strategic management
UR - http://www.scopus.com/inward/record.url?scp=84986135408&partnerID=8YFLogxK
U2 - 10.1108/09513570010353747
DO - 10.1108/09513570010353747
M3 - Article
AN - SCOPUS:84986135408
SN - 0951-3574
VL - 13
SP - 647
EP - 668
JO - Accounting, Auditing and Accountability Journal
JF - Accounting, Auditing and Accountability Journal
IS - 5
ER -