How institutional disruptions impact the choice of MNC subsidiary control systems

IF 1.9 4区管理学 Q3 MANAGEMENT

Cross Cultural & Strategic Management Pub Date : 2024-03-15 DOI:10.1108/ccsm-02-2023-0019

B. Elango

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引用次数: 0

Abstract

Purpose

This study seeks to explicate how institutional disruptions impact multinational corporation (MNC) subsidiary control choices. It uses institutional theory to understand the influence of formal and informal institutions across countries on the type of control system employed in an MNC manufacturing subsidiary.

Design/methodology/approach

This study’s sample is based on a unique dataset from five trustworthy sources. We use multi-level models to account for the hierarchical nature of the sample of 1,630 multinational subsidiaries spread across 26 host countries by firms from 21 home countries.

Findings

The institutional distance between the host and the home country has a negative relationship with strategic control. In contrast, the home country’s power distance has a positive relationship with strategic control.

Originality/value

Study findings indicate the need to incorporate formal and informal institutional elements in the control system’s conceptual framing and design. This notion complements existing visualizations of optimizing MNC controls through extant articulations of minimizing governance costs through organizational design choices or strategic needs.

查看原文本刊更多论文

体制混乱如何影响跨国公司子公司控制系统的选择

目的本研究旨在阐述制度混乱如何影响跨国公司（MNC）子公司的控制选择。本研究使用制度理论来理解各国的正式和非正式制度对跨国公司制造子公司所采用的控制制度类型的影响。我们使用多层次模型来解释 21 个母国企业在 26 个东道国的 1630 家跨国子公司样本的层次性。研究结果东道国和母国之间的制度距离与战略控制存在负相关关系。原创性/价值研究结果表明，有必要将正式和非正式制度要素纳入控制系统的概念框架和设计中。这一概念补充了现有的通过组织设计选择或战略需求最小化治理成本的表述来优化跨国公司控制的可视化方法。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

Cross Cultural & Strategic Management MANAGEMENT-

CiteScore

4.70

自引率

12.00%

发文量

期刊介绍： Cross Cultural & Strategic Management (CCSM), is dedicated to providing a forum for the publication of high quality cross-cultural and strategic management research in the global context. CCSM is interdisciplinary in nature and welcomes submissions from scholars from international business, management and other disciplines, such as anthropology, economics, political science, psychology and sociology. The goal of CCSM is to publish discerning, theoretically grounded, evidence-based and cutting edge research on issues relevant to all aspects of global management. CCSM is especially interested in theoretical and empirical papers that investigate new and unique ideas and/or are multilevel (micro-meso-macro) and/or are multidisciplinary in nature. Research papers submitted to CCSM are expected to include an answer to the question: What is the contribution of this paper to the literature and the field of international business and managing in the global context? CCSM accepts theoretical/conceptual and empirical papers based on quantitative and qualitative research endeavors that advance our overall knowledge of international business. This includes research that yields positive, neutral or negative findings as long as these studies are based on sound research methodology, and have a good command of the theory/literature that pertains to the phenomena under investigation. These studies should also provide a more in-depth interpretation of the reason(s) for the findings and include more detailed recommendations for future research directions.