Management Control Systems in Subsidiaries of Multinationals in the Emerging Market of Central Eastern Europe

  • Joanna Gusc Wageningen University, The Netherlands
  • H.J. Bremmers Wageningen University, The Netherlands
  • S.W.F. Omta Wageningen University, The Netherlands

Abstract

Using 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.
Published
2005-12-01
How to Cite
Gusc, J., Bremmers, H., & Omta, S. (2005). Management Control Systems in Subsidiaries of Multinationals in the Emerging Market of Central Eastern Europe. Journal of Comparative International Management, 8(2). Retrieved from https://journals.lib.unb.ca/index.php/JCIM/article/view/641
Section
Articles