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CONTROL IN MNCs: IMPACT OF BUSINESS STRATEGY

Lai-Hong Chung
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Lai-Hong Chung: School of Accountancy and Business, Nanyang Technological University, Singapore

Journal of Enterprising Culture (JEC), 1995, vol. 03, issue 01, 103-119

Abstract: This paper is directed at the problem of designing an appropriate accounting information and control system for multinational organisations. The organisational context is shaped by factors such as the interrelationships between subsidiaries, the environmental uncertainties, the nationality of subsidiary and the cultural proximity of subsidiary to parent organisation. Moreover, the subsidiaries may be pursuing different business strategies and therefore may require different controls. Hence, strategy must be included as a factor in designing control systems for subsidiaries of MNCs. This paper will focus on the "fit" between various functions of the control system and business strategy in the context of a multinational organisation.

Date: 1995
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DOI: 10.1142/S0218495895000064

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