Control in Multidivisional Firms: Levels Issues and Internal Differentiation.

Abstract

Most large corporations are organized as multidivisional firms, consisting of a corporate headquarters and a number of semi-autonomous business units. The control of business units is crucial for the success of business units as well as the firm as a whole. In deciding on the appropriate control mechanisms both corporate factors and business level factors need to be taken into account. The multilevel nature of control and the complexities of using different styles of control within one multidivisional firm are the central topics of the dissertation.