The International Control Conundrum: The Case of ‘Hyperinflationary’Subsidiaries

Laurent L Jacque and Peter Lorange
Additional contact information
Laurent L Jacque: University of Pennsylvania
Peter Lorange: University of Pennsylvania

Journal of International Business Studies, 1984, vol. 15, issue 2, 185-201

Abstract: Standard methods for financial controls of multinational corporations’ (MNCs) foreign subsidiaries generally provide inadequate managerial support under conditions of extreme environmental turbulence, resulting in a highly distortive performance evaluation system. This article examines the specific conditions of monetary hyperinflation and how existing control systems should be upgraded or environmentalized in order to cope with such operating conditions. A taxonomy of hyperinflationary environments and a control model—based upon variance analysis—aimed at smoothing excessive swings in the performance of foreign operations is developed, thereby correcting for some of the dysfunctionalities in the traditional planning and control processes.© 1984 JIBS. Journal of International Business Studies (1984) 15, 185–201

Date: 1984
References: Add references at CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
http://www.palgrave-journals.com/jibs/journal/v15/n2/pdf/8490490a.pdf Link to full text PDF (application/pdf)
http://www.palgrave-journals.com/jibs/journal/v15/n2/full/8490490a.html Link to full text HTML (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pal:jintbs:v:15:y:1984:i:2:p:185-201

Ordering information: This journal article can be ordered from
http://www.springer. ... nt/journal/41267/PS2

Access Statistics for this article

Journal of International Business Studies is currently edited by John Cantwell

More articles in Journal of International Business Studies from Palgrave Macmillan, Academy of International Business
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().