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International Business Management pp 275–308Cite as

Control of International Operations

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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.

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Notes

  1. 1.

    The terms clan and tradition used by Ouchi are very much the same as cultural traits. Since the framework of his writings was adopted by Lebas and Weigenstein to elaborate on cultural control, we too use Ouchi’s argument on “clans” and “tradition” in our discussion of cultural control.

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Authors and Affiliations

  1. Coles College of Business, Kennesaw State University, Kennesaw, GA, USA

    Kamal Fatehi

  2. Management & Marketing Department, St. John Fisher College, Rochester, NY, USA

    Jeongho Choi

Authors
  1. Kamal Fatehi
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  2. Jeongho Choi
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Fatehi, K., Choi, J. (2019). Control of International Operations. In: International Business Management. Springer Texts in Business and Economics. Springer, Cham. https://doi.org/10.1007/978-3-319-96622-9_9

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