CONTROL DIFFERENTIATION, RESOURCE SHARING AND PERFORMANCE OF BUSINESS UNITS

Eric Dooms and Aswin van Oijen

Schmalenbach Business Review (sbr), 2005, vol. 57, issue 4, 320-331

Abstract: Scholars in strategy and in international management emphasize that a fit between the context of a business unit and corporate control mechanisms enhances the performance of both the individual business unit and corporations as a whole. However, the negative implications of control differentiation across business units within a corporation have not been thoroughly studied. We use insights from procedural justice literature to assert that perceived control differentiation may be problematic when the success of a business unit depends on resource sharing with other units in a corporation. Data of 136 business units in 45 Dutch multidivisional firms support our assertion.

Keywords: Control Differentiation; Performance; Procedural Justice; Resource Sharing (search for similar items in EconPapers)
JEL-codes: L22 M10 (search for similar items in EconPapers)
Date: 2005
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:sbr:abstra:v:57:y:2005:i:4:320-331

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