MANAGING FOREIGN SUBSIDIARIES: AGENTS OF HEADQUARTERS, OR AN INTERDEPENDENT NETWORK?

摘要

In this study, two different theoretical perspectives are used to develop sets of hypotheses regarding the mechanisms used to manage foreign subsididarise of multinational corporations. First, agency theory serves as the basis for a model that predicts the use of monitoring mechanisms and incentive compensation. Then, it is argued that these mechanisms are insufficient for managing subsidiaries characterized by hgih levels of intra-firm international interdepedence, the managemetn of which is critical to many of today's complex global firms.