Expatriate managers and MNC’s ability to control international subsidiaries: the case of Japanese MNCs

Paik, Yongsun; Sohn, Junghoon Derick

doi:10.1016/j.jwb.2003.08.003

Cited by 113 publications

(71 citation statements)

References 54 publications

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…Despite the associated high costs, expatriates are a widespread mechanism of social control (Chung et al 2006;Schaaper et al 2011). Though, only expatriates with appropriate knowledge of the host country culture contribute positively to MC at foreign subsidiaries (Paik and Sohn 2004). Similarly to expatriates, the board of subsidiary directors assumes a predominantly coordinating role by transferring information between headquarters and a subsidiary.…”

Section: Social Controlmentioning

confidence: 99%

“…Understanding a subsidiary's operations is a precondition for setting and monitoring targets (Giacobbe et al 2016). Similarly, social control as executed by expatriates requires adequate cultural knowledge of the host country (Paik and Sohn 2004). Besides intercultural knowledge, the expertise of management accountants is an important factor for implementing control systems (Masquefa 2008;Moilanen 2007;Seal 2001).…”

Section: Mnc Characteristicsmentioning

confidence: 99%

“…In addition, increased cultural distance is associated with lower performance (Lin 2014). Lacking familiarity with the local culture limits the ability to exert control over foreign activities (Giacobbe et al 2016;Paik and Sohn 2004) and impedes the implementation of management information systems (Avison and Malaurent 2007;Sheu et al 2004). Low cultural distance enhances trust in a subsidiary's management, while high cultural distance intensifies controls (Moilanen 2008;Richards 2000).…”

Section: Relationships Of Subsidiaries Within Mncsmentioning

confidence: 99%

See 2 more Smart Citations

Management control in multinational companies: a systematic literature review

Sageder

Feldbauer‐Durstmüller

2018

Rev Manag Sci

View full text Add to dashboard Cite

Executing management control across borders is crucial for multinational companies (MNCs). Various management control mechanisms serve to align foreign subsidiaries with corporate goals. Management control at MNCs has been subject of numerous studies in the past 25 years, thus highlighting the relevance of the topic. To provide a comprehensive overview of the research field, a systematic literature review including 79 articles from scientific journals has been conducted that outlines various control mechanisms and presents underlying theories as well as development over time. The design of management control and management accounting depends on internal factors at headquarters and the subsidiary as well as on external factors like culture or market requirements. The relationship of headquarters with subsidiaries and the integration into the host country context represent another influence on management control. This paper categorizes influencing factors, discusses interactions and limitations of control mechanisms and suggests implications for practice and research along with avenues for future research.

show abstract

Section: Social Controlmentioning

confidence: 99%

Section: Mnc Characteristicsmentioning

confidence: 99%

Section: Relationships Of Subsidiaries Within Mncsmentioning

confidence: 99%

See 1 more Smart Citation

Management control in multinational companies: a systematic literature review

Sageder

Feldbauer‐Durstmüller

2018

Rev Manag Sci

View full text Add to dashboard Cite

show abstract

“…Expatriates are highly committed to the headquarters and are induced by the corporate culture of the firm, this results in potential conflicts regarding culture with host country nationals and thereby reduce the ability to control (Paik and Sohn, 2004). Existing research generally agrees that failure is not due to technical incompetence of managers rather there are difficulties regarding intercultural adjustment (Bird and Mukuda, 1989;Tung, 1993).…”

Section: Theory 21 Expatriate Theorymentioning

confidence: 99%

“There Is Nothing Either Good or Bad, but Thinking Makes It So” – Cross-Cultural Perception and Cooperation in Bangladesh – It’s Not About Culture

Heijes¹

2018

EJBM

View full text Add to dashboard Cite

This paper seeks to understand the dynamics of cross-cultural cooperation between Dutch expatriates and their Bangladeshi counterparts. As research on expatriates in Bangladesh is still lacking, an exploratory approach was chosen, in order to gain in-depth knowledge. It was found that national culture might be less important in the Bangladeshi context. Rather having a positive attitude and knowledge of the language was found to be important for effective management control in Bangladesh. Next to this, the cultural distance between the Netherlands and Bangladesh is larger from the perception of the expat and smaller from the perception of the Bangladeshi counterpart.

show abstract

“…Le transfert du processus de production est souvent complexe à codifier (Kogut et Zander, 1993;Vachani, 2005), particulièrement dans le contexte des PME moins formalisées que les grandes entreprises et où la connaissance et le savoirfaire sont la plupart du temps de caractère tacite. L'expatriation permet de réduire l'usage de mécanismes bureaucratiques (Paik et Sohn, 2004) et de veiller à la qualité des produits fabriqués à l'étranger. Par ailleurs, le parent étranger s'expose à un risque d'appropriation de la technologie.…”

Section: Les Pratiques D'expatriationunclassified

L’influence du risque pays et de la distance culturelle sur les modes de présence et de contrôle des PME à l’étranger

Jean-Amans

Abdellatif

2014

View full text Add to dashboard Cite

Cette recherche vise à analyser l’influence du risque pays et de la distance culturelle sur les modes de présence et de contrôle des PME sur leurs filiales. Deux variables relatives à la stratégie d’implantation à l’étranger ont été retenues : le type d’implantation (filiale détenue à 100 % ou coentreprise internationale) et les pratiques d’expatriation. Pour conduire cette étude, une enquête en ligne a été menée par le biais d’une base de données entièrement élaborée et constituée de 2526 PME françaises implantées à l’étranger sous la forme de filiales. Notre contribution montre que le risque pays et la distance culturelle sont associés à la forme de la filiale implantée à l’étranger, mais n’influencent pas les pratiques d’expatriation mobilisées.This research aims to analyze the influence of country risk and cultural distance on entry mode and control of SMEs over their subsidiaries. Two variables reflecting the entry mode were used : type of implantation (wholly-owned subsidiaries and international joint venture) and expatriation practices. To carry out this study, an online survey was conducted through a database constructed by ourselves and consists of 2526 French SMEs located abroad as subsidiaries. Our contribution shows that the country risk and cultural distance associated with the form of the subsidiary located abroad, but do not influence practices of expatriation.Esta investigación tiene como objetivo analizar la influencia del riesgo país y la distancia cultural en los modos de presencia y control de las PYME en sus filiales. Se utilizaron dos variables relacionadas con la estrategia de implantación en el exterior : el tipo de implantación (filial al 100 % y la empresa conjunta internacional) y las prácticas de expatriación. Para llevar a cabo este estudio, una encuesta en línea se realizó a través de una base de datos que hemos totalmente desarrollado y se compone de 2.526 pymes francesas radicadas en el extranjero en forma de filiales. Nuestra contribución demuestra que el riesgo país y la distancia cultural son asociados a la forma de la filial en el extranjero, pero no influyen en las prácticas de expatriación movilizados

show abstract

Expatriate managers and MNC’s ability to control international subsidiaries: the case of Japanese MNCs

Cited by 113 publications

References 54 publications

Management control in multinational companies: a systematic literature review

Management control in multinational companies: a systematic literature review

“There Is Nothing Either Good or Bad, but Thinking Makes It So” – Cross-Cultural Perception and Cooperation in Bangladesh – It’s Not About Culture

L’influence du risque pays et de la distance culturelle sur les modes de présence et de contrôle des PME à l’étranger

Contact Info

Product

Resources

About