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The implementation of control mechanisms in European multinationals: a comparison of British and German subsidiaries in Venezuela

By Lud Márquez


In organisational theory, there is increased concern over how a particular context affects the operations of firms, especially in multinational organizations. As these firms operate in different contexts, there is growing interest in learning how social institutions from these contexts may influence the operations of these firms. MNC subsidiaries, principally, have attracted the attention of academics because they move in different spaces that are interrelated (e.g. country of origin, industry and country of operations), which may have different institutional settings. The implementation of control mechanisms in MNC subsidiaries represents an organizational area that is significantly influenced by these forces.\ud \ud This thesis develops a theoretical framework to explain the presence of control devices in MNC subsidiaries. The framework encompasses different levels of analysis: country of origin, country of operations, industry and the organization itself. The aim is to explain the presence of control mechanism in MNC subsidiaries by examining features that might affect the implementation of these devices. The framework places particular emphasis on two areas. First, understanding the effect of institutions based in the country of origin on the implementation of control mechanisms in MNCs. And second, appreciating the effect of institutions in the country of operations on the implementation of these devices in subsidiaries

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