From Global to Metanational: How Companies Win in the Knowledge Economy
From Global to Metanational: How Companies Win in the Knowledge Economy
Balancing and Rebalancing in the Creation and Evolution of Organizational Control
Organization Science
Unraveling HRM: Identity, Ceremony, and Control in a Management Consulting Firm
Organization Science
Corporate Governance Reform as Institutional Innovation: The Case of Japan
Organization Science
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The control and coordination of a network of geographically and culturally dispersed subsidiaries is one of the most prominent challenges in international management. However, many empirical findings on the effectiveness of various control mechanisms and combinations thereof are still counterintuitive. This study uses longitudinal case studies and cross-sectional interview data to extend control theory by examining why, how, and in what sequence large multinational firms MNCs implement controls in their networks of foreign subsidiaries. Our analysis draws from literature on institutional theory, embeddedness, and organizational power to demonstrate that MNC headquarters need to overcome institutional duality when implementing their controls abroad. We find that headquarters do so by using social controls, primarily as a way of legitimizing and institutionalizing their process and output controls that are implemented subsequently.