Control and its perception in CEE parent companies and their developed market subsidiaries

Velinov, Emil and Hilger, Andreas M. (2023) Control and its perception in CEE parent companies and their developed market subsidiaries. JOURNAL OF EAST EUROPEAN MANAGEMENT STUDIES, 28 (2). pp. 241-264. ISSN 0949-6181, 1862-0019

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Abstract

Our article examines control perceptions among Central and Eastern European (CEE) parent companies and their subsidiaries in developed markets based on human resource manage-ment and corporate social responsibility practices. Through a multiple case study approach, we identify the usage of impersonal and personal control mechanisms across three parent companies from the Czech Republic and their subsidiaries in Germany. We also identify perception gaps regarding the intensity of the asserted parental control of subsidiary practices. Due to isomorphic pressures, parental interference in practices with a high contextuality in the developed host market result in the perception of being tightly controlled in the subsidiary, which is in contrast to the parent's perception. Nevertheless, we demonstrate that close personal ties between parent and subsidiary managers alleviate the control perception on the subsidiary side and consequently the overall control perception gap.

Item Type: Article
Uncontrolled Keywords: MULTINATIONAL-CORPORATIONS; INSTITUTIONAL DUALITY; MANAGEMENT-PRACTICES; COMPETITIVE FORCES; CONTROL-SYSTEMS; PERFORMANCE; FIRMS; DELEGATION; TENSION; DILEMMA; perception gaps; subsidiary practices; control; emerging markets; Central and Eastern Europe; parent-subsidiary relationship; south-north investment
Subjects: 300 Social sciences > 330 Economics
Divisions: Business, Economics and Information Systems > Institut für Betriebswirtschaftslehre > Lehrstuhl für Führung und Organisation (Prof. Dr. Thomas Steger)
Depositing User: Dr. Gernot Deinzer
Date Deposited: 13 Mar 2024 13:08
Last Modified: 13 Mar 2024 13:08
URI: https://pred.uni-regensburg.de/id/eprint/59935

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