{"title":"MNCs’ Intermediate Units and Their Choice of Control Mechanisms","authors":"","doi":"10.1007/s11575-023-00527-z","DOIUrl":null,"url":null,"abstract":"<h3>Abstract</h3> <p>This paper analyzes how MNCs’ intermediate units—those that exercise authority over other subsidiaries—apply specific control mechanisms: centralization, formalization, outcome control, and socialization. We combine agency and network theory to explain how intermediate units’ dual agency role—as both principal and agent— and their network embeddedness form the choice of control mechanisms. More specifically, we propose hypotheses on how the intermediate units’ internal and external relationships determine their choice of control mechanism. We study this issue in the context of Spanish intermediate units —owned by European MNCs— that exercise authority over subsidiaries in Latin America.</p>","PeriodicalId":51434,"journal":{"name":"Management International Review","volume":null,"pages":null},"PeriodicalIF":3.9000,"publicationDate":"2024-01-22","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Management International Review","FirstCategoryId":"91","ListUrlMain":"https://doi.org/10.1007/s11575-023-00527-z","RegionNum":3,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q2","JCRName":"MANAGEMENT","Score":null,"Total":0}
引用次数: 0
Abstract
This paper analyzes how MNCs’ intermediate units—those that exercise authority over other subsidiaries—apply specific control mechanisms: centralization, formalization, outcome control, and socialization. We combine agency and network theory to explain how intermediate units’ dual agency role—as both principal and agent— and their network embeddedness form the choice of control mechanisms. More specifically, we propose hypotheses on how the intermediate units’ internal and external relationships determine their choice of control mechanism. We study this issue in the context of Spanish intermediate units —owned by European MNCs— that exercise authority over subsidiaries in Latin America.
期刊介绍:
Management International Review publishes research-based articles that reflect significant advances in the key areas of International Management. Its target audience consists of scholars in International Business Administration.
Management International Review is a double-blind refereed journal that aims at the advancement and dissemination of research in the fields of International Management. The scope of the journal comprises International Business, Cross-Cultural Management, and Comparative Management. The journal publishes research that builds or extends International Management theory so that it can contribute to International Management practice.
Management International Review welcomes both theoretical and empirical work. Original papers are invited that are based on a solid theoretical basis and a rigorous methodology. In the area of empirical studies, the journal publishes both quantitative and qualitative research. To be published in
Management International Review, a paper must make strong contributions and highlight the significance of those contributions to the field of International Management. The editors are especially interested in manuscripts that break new ground rather than papers that make only incremental contributions.
Management International Review publishes articles and research notes. Every year, six issues are published. On average, two of these issues are Focused Issues, which concentrate on a specific subfield of International Management.