International Managerial Performance Evaluation: A Five Country Comparison

This study does not support the generally accepted theory that transnational corporations (TNCs) use different criteria to evaluate managers based on their location (host or home country). If it is assumed that a major TNC strategy is to maximize profits, thus maximizing returns to shareholders, it follows that management decisions are made with this strategy as the desired outcome. Current theory does not address the more global view of the TNC where subsidiaries act in concert to maximize profits, and therefore can be evaluated in a similar fashion. There is some evidence, however, that specific performance evaluation criteria do vary in importance by country.