Contextual Factors Influencing Control Strategy of Multinational Corporations

THE TERM 'CONTROL' REFERS TO THE MECHANISMS USED TO ASSURE THE EXECUTION OF ORGANIZATIONAL GOALS AND PLANS. CONCENTRATION OF AUTHORITY, STANDARDIZATION OF OPERATIONS, AND THE USE OF STAFF PERSONNEL ARE EXAMPLES OF THESE MECHANISMS. IN INTERNATIONAL STUDIES THE MAJOR FOCUS OF ATTENTION HAS BEEN ON DETERMINING THE APPROPRIATE GLOBAL STRUCTURE OF MULTINATIONAL CORPORATIONS (MNCS). CONTROL MECHANISMS ARE CLASSIFIED INTO DIRECT AND INDIRECT CONTROLS DEPENDING ON HOW DIRECTLY THE PARENT COMPANY INFLUENCES THE DECISION-MAKING PROCESS OF THE SUBSIDIARY. DIRECT CONTROLS ARE SUCH AS THE NATIONALITY OF THE OPERATION'S TOP MANAGER. RELATIONSHIPS BETWEEN NATIONALITY AND MOST OTHER CONTROL VARIABLES ARE SIGNIFICANT. TABLES.