The Influences of Comprehensive Performance Management Systems on Subsidiaries: Comparative Analysis of Foreign Subsidiaries and Domestic Subsidiaries

Yudai Onitsuka

Chapter 10 in Integrated Power of Management Control Systems in Japan, 2025, pp 173-192 from World Scientific Publishing Co. Pte. Ltd.

Abstract: This chapter examines a research question: Does the effective usage of a comprehensive performance management system by headquarters differ depending on the type of relationship between headquarters and subsidiaries? The analyses in this chapter reveal that the effective use of comprehensive performance management systems differs depending on the relationship between headquarters and subsidiaries, especially in a hierarchical relationship. In particular, the comparison of the influences on foreign and domestic subsidiaries indicates that the diagnostic use of comprehensive performance management systems by headquarters is more effective for Multinational Companies (MNCs). However, the effects of the interactive use of comprehensive performance management systems are more negative for foreign subsidiaries than for domestic ones.In addition, the results suggest that the degree of organizational decentralization, which is a characteristic of organizational hierarchical relationships, influences the effective use of a comprehensive performance management system. The results of the analyses in this chapter indicate that organizational decentralization is not only affected by the company’s size but also by the distance between headquarters and subsidiaries, which influences the effectiveness of the use of a comprehensive performance management system.

Keywords: Japanese Organizations; Management Control; Innovation; Gender; SDGs; Non-Profit Organizations (search for similar items in EconPapers)
JEL-codes: L1 L2 M1 (search for similar items in EconPapers)
Date: 2025
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