Control of International Operations

Kamal Fatehi and Jeongho Choi
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Kamal Fatehi: Kennesaw State University
Jeongho Choi: St. John Fisher College

Chapter 9 in International Business Management, 2019, pp 275-308 from Springer

Abstract: Abstract No organization can accomplish its goals without proper control. The imperative of organizational control is heightened when firms cross national borders and expand into unfamiliar foreign markets. This chapter is all about how international operations and foreign subsidiaries are controlled. We first look at various control mechanisms and discuss, in detail, three approaches to control. The cultural aspects of MNC control, which is effective in dealing with the uncertainty and complexity of the international market, are elaborated. Finally, within the context of the historical evolution of the international environment, the corresponding MNC coordination and control mechanisms are summarized. There are differences between the control of an MNC and that of a domestic firm. These differences are due to the complexity of and uncertainties surrounding the MNC environment, with a resulting potential for difficulty. The relationship with the host government creates additional problems. Following a discussion of control problems of the MNCs, the influence of host government actions on MNC control is analyzed.

Keywords: Foreign Subsidiaries; Host Government; Shared Equity Ownership; Subsidiary’s Balance; Marginal Players (search for similar items in EconPapers)
Date: 2019
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Persistent link: https://EconPapers.repec.org/RePEc:spr:sptchp:978-3-319-96622-9_9

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DOI: 10.1007/978-3-319-96622-9_9

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