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

J.S. Gusc, H.J. Bremmers, S.W.F. Omta

Research output: Contribution to journalArticleAcademicpeer-review

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¿ the greater the coordination activities between the multinational companies and their subsidiaries the lesser the control needed.
Original languageEnglish
Pages (from-to)57-78
JournalJournal of Comparative International Management
Volume8
Issue number2
Publication statusPublished - 2005

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