Asian Business & Management

, Volume 12, Issue 4, pp 409–431 | Cite as

Subsidiary control in Japanese, German and US multinational corporations: Direct control from headquarters versus indirect control through expatriation

Original Article
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Abstract

This study examines the degree to which Japanese, German and US multinational corporations (MNCs) use two different subsidiary control mechanisms: direct control through headquarters and indirect control through staffing key positions in subsidiary management with expatriates. On the basis of data from 617 subsidiaries, we found that US MNCs focus more on the former, whereas Japanese MNCs rely primarily on the latter. German MNCs take a middle position. Furthermore, we found across all three countries that the more technical management functions are controlled more tightly than more culturally sensitive areas. The reliance of Japanese MNCs on subsidiary control through expatriates suggests that these corporations have a particularly acute need to invest in global talent management systems.

Keywords

global staffing subsidiary control Japan Germany USA 
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Copyright information

© Palgrave Macmillan, a division of Macmillan Publishers Ltd 2013

Authors and Affiliations

  1. 1.Department of International BusinessTübingen UniversityTübingenGermany

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