Management Control Systems in Subsidiaries of Multinationals in the Emerging Market of Central Eastern Europe
AbstractUsing transaction cost theory and the theory of multinational enterprise, this study examines the extent of the degree to which management of multinational companies can control over its subsidiaries' configuration and coordination abilities. Empirical results showed that the subsidiaries enjoyed a significant freedom when decentralized standards were used in operational and the production activities. In the long-run, however, the centralized standards worked better— thegreater the coordination activities between the multinational companies and their subsidiaries the lesser the control needed.
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