Publicação
The impact of strategy, environment, and the management system on the foreign subsidiary: the implication for open innovation
| Resumo: | With globalisation, there has been an intensification of investments by foreign groups in sectors strategic to their country of origin, such as some minerals. It is, therefore, crucial for a parent company to implement specific controls in its management control systems. In these circumstances, this study aims to determine the degree of control exercised by the parent company over a subsidiary in cultural and organisational dimensions. In addition, other exogenous factors (entities and external factors) influence this system. The results obtained showed that the parent company had an influence on the Management Control System (MCS) of the subsidiary and changed the way control was exercised there, but was unable to deal with macroeconomic instability, environmental and strategic uncertainty, and, consequently, the management risk involved in the extractive activity; in this case, for this subsidiary to operate a seam mine and not be aware of it since it is essentially a commercial, economic group. In addition to these effects on the organisational dimension and the cultural dimension, the shareholders were unable to integrate the subsidiary’s organisational and local culture, which generated some dynamic tension with the expatriate. In addition to the theoretical framework used, it was confirmed that the Flamholtz model is passive to implement in industries in general, particularly in the extractive industry. Finally, some final considerations were made about the management control system, in which the argument is reinforced that there must be empathy between the local staff and the expatriate, as a representative of the shareholders, in order for this system to be a vehicle for the effective transfer of knowledge between both parties, as well as to be supported by open innovation. |
|---|---|
| Autores principais: | Rodrigues, Margarida |
| Outros Autores: | Alves, Maria do Céu; Oliveira, Cidália Pereira; Vale, José; Silva, Rui |
| Assunto: | Multinational Subsidiary Strategy Institutional environment Management control system |
| Ano: | 2021 |
| País: | Portugal |
| Tipo de documento: | artigo |
| Tipo de acesso: | acesso aberto |
| Instituição associada: | Universidade do Minho |
| Idioma: | inglês |
| Origem: | RepositóriUM - Universidade do Minho |
| _version_ | 1867438400693338112 |
|---|---|
| author | Rodrigues, Margarida |
| author2 | Alves, Maria do Céu Oliveira, Cidália Pereira Vale, José Silva, Rui |
| author2_role | author author author author |
| author_facet | Rodrigues, Margarida Alves, Maria do Céu Oliveira, Cidália Pereira Vale, José Silva, Rui |
| author_role | author |
| contributor_name_str_mv | RepositóriUM - Universidade do Minho |
| country_str | PT |
| creators_json_txt | [{\"Person.name\":\"Rodrigues, Margarida\"},{\"Person.name\":\"Alves, Maria do Céu\"},{\"Person.name\":\"Oliveira, Cidália Pereira\"},{\"Person.name\":\"Vale, José\"},{\"Person.name\":\"Silva, Rui\"}] |
| datacite.contributors.contributor.contributorName.fl_str_mv | RepositóriUM - Universidade do Minho |
| datacite.creators.creator.creatorName.fl_str_mv | Rodrigues, Margarida Alves, Maria do Céu Oliveira, Cidália Pereira Vale, José Silva, Rui |
| datacite.date.Accepted.fl_str_mv | 2021-02-01T00:00:00Z |
| datacite.date.available.fl_str_mv | 2021-05-13T13:50:14Z |
| datacite.date.embargoed.fl_str_mv | 2021-05-13T13:50:14Z |
| datacite.rights.fl_str_mv | http://purl.org/coar/access_right/c_abf2 |
| datacite.subjects.subject.fl_str_mv | Multinational Subsidiary Strategy Institutional environment Management control system |
| datacite.titles.title.fl_str_mv | The impact of strategy, environment, and the management system on the foreign subsidiary: the implication for open innovation |
| dc.contributor.none.fl_str_mv | RepositóriUM - Universidade do Minho |
| dc.creator.none.fl_str_mv | Rodrigues, Margarida Alves, Maria do Céu Oliveira, Cidália Pereira Vale, José Silva, Rui |
| dc.date.Accepted.fl_str_mv | 2021-02-01T00:00:00Z |
| dc.date.available.fl_str_mv | 2021-05-13T13:50:14Z |
| dc.date.embargoed.fl_str_mv | 2021-05-13T13:50:14Z |
| dc.format.none.fl_str_mv | application/pdf |
| dc.identifier.none.fl_str_mv | https://hdl.handle.net/1822/72631 |
| dc.language.none.fl_str_mv | eng |
| dc.publisher.none.fl_str_mv | Multidisciplinary Digital Publishing Institute (MDPI) |
| dc.rights.cclincense.fl_str_mv | http://creativecommons.org/licenses/by/4.0/ |
| dc.rights.none.fl_str_mv | http://purl.org/coar/access_right/c_abf2 |
| dc.rights.rights.copyright.fl_str_mv | openAccess |
| dc.subject.none.fl_str_mv | Multinational Subsidiary Strategy Institutional environment Management control system |
| dc.title.fl_str_mv | The impact of strategy, environment, and the management system on the foreign subsidiary: the implication for open innovation |
| dc.type.none.fl_str_mv | http://purl.org/coar/resource_type/c_6501 |
| description | With globalisation, there has been an intensification of investments by foreign groups in sectors strategic to their country of origin, such as some minerals. It is, therefore, crucial for a parent company to implement specific controls in its management control systems. In these circumstances, this study aims to determine the degree of control exercised by the parent company over a subsidiary in cultural and organisational dimensions. In addition, other exogenous factors (entities and external factors) influence this system. The results obtained showed that the parent company had an influence on the Management Control System (MCS) of the subsidiary and changed the way control was exercised there, but was unable to deal with macroeconomic instability, environmental and strategic uncertainty, and, consequently, the management risk involved in the extractive activity; in this case, for this subsidiary to operate a seam mine and not be aware of it since it is essentially a commercial, economic group. In addition to these effects on the organisational dimension and the cultural dimension, the shareholders were unable to integrate the subsidiary’s organisational and local culture, which generated some dynamic tension with the expatriate. In addition to the theoretical framework used, it was confirmed that the Flamholtz model is passive to implement in industries in general, particularly in the extractive industry. Finally, some final considerations were made about the management control system, in which the argument is reinforced that there must be empathy between the local staff and the expatriate, as a representative of the shareholders, in order for this system to be a vehicle for the effective transfer of knowledge between both parties, as well as to be supported by open innovation. |
| dirty | 0 |
| eu_rights_str_mv | openAccess |
| format | article |
| fulltext.url.fl_str_mv | https://repositorium.uminho.pt/bitstreams/2ed04e70-634f-4b9c-82c5-355311eb4b2f/download |
| id | rum_7d641b8b0797bc34a50d2e577a577ffc |
| identifier.url.fl_str_mv | https://hdl.handle.net/1822/72631 |
| instacron_str | repositorium |
| institution | Universidade do Minho |
| instname_str | Universidade do Minho |
| language | eng |
| network_acronym_str | rum |
| network_name_str | RepositóriUM - Universidade do Minho |
| oai_identifier_str | oai:repositorium.uminho.pt:1822/72631 |
| organization_str_mv | urn:organizationAcronym:repositorium |
| person_str_mv | Rodrigues, Margarida Alves, Maria do Céu Oliveira, Cidália Pereira Vale, José Silva, Rui |
| publishDate | 2021 |
| publisher.none.fl_str_mv | Multidisciplinary Digital Publishing Institute (MDPI) |
| reponame_str | RepositóriUM - Universidade do Minho |
| repository_id_str | urn:repositoryAcronym:rum |
| service_str_mv | urn:repositoryAcronym:rum |
| spelling | engMultidisciplinary Digital Publishing Institute (MDPI)porWith globalisation, there has been an intensification of investments by foreign groups in sectors strategic to their country of origin, such as some minerals. It is, therefore, crucial for a parent company to implement specific controls in its management control systems. In these circumstances, this study aims to determine the degree of control exercised by the parent company over a subsidiary in cultural and organisational dimensions. In addition, other exogenous factors (entities and external factors) influence this system. The results obtained showed that the parent company had an influence on the Management Control System (MCS) of the subsidiary and changed the way control was exercised there, but was unable to deal with macroeconomic instability, environmental and strategic uncertainty, and, consequently, the management risk involved in the extractive activity; in this case, for this subsidiary to operate a seam mine and not be aware of it since it is essentially a commercial, economic group. In addition to these effects on the organisational dimension and the cultural dimension, the shareholders were unable to integrate the subsidiary’s organisational and local culture, which generated some dynamic tension with the expatriate. In addition to the theoretical framework used, it was confirmed that the Flamholtz model is passive to implement in industries in general, particularly in the extractive industry. Finally, some final considerations were made about the management control system, in which the argument is reinforced that there must be empathy between the local staff and the expatriate, as a representative of the shareholders, in order for this system to be a vehicle for the effective transfer of knowledge between both parties, as well as to be supported by open innovation.application/pdfporThe impact of strategy, environment, and the management system on the foreign subsidiary: the implication for open innovationRodrigues, MargaridaAlves, Maria do CéuOliveira, Cidália PereiraVale, JoséSilva, RuiHostingInstitutionOrganizationalRepositóriUM - Universidade do Minhoe-mailmailto:repositorium@usdb.uminho.ptrepositorium@usdb.uminho.ptCITATIONRodrigues, M.; Alves, M.d.C.; Oliveira, C.; Vale, J.; Silva, R. The Impact of Strategy, Environment, and the Management System on the Foreign Subsidiary: The Implication for Open Innovation. J. Open Innov. Technol. Mark. Complex. 2021, 7, 51. https://doi.org/10.3390/joitmc7010051EISSNIsPartOf2199-8531DOIIsPartOf10.3390/joitmc70100512021-05-13T13:50:14Z2021-02-012021-03-26T14:06:55Z2021-02-01T00:00:00ZHandlehttps://hdl.handle.net/1822/72631http://purl.org/coar/access_right/c_abf2open accessMultinationalSubsidiaryStrategyInstitutional environmentManagement control system1469764 bytesliteraturehttp://purl.org/coar/resource_type/c_6501journal article2021-02-01http://creativecommons.org/licenses/by/4.0/openAccesshttp://purl.org/coar/access_right/c_abf2application/pdffulltexthttps://repositorium.uminho.pt/bitstreams/2ed04e70-634f-4b9c-82c5-355311eb4b2f/download |
| spellingShingle | The impact of strategy, environment, and the management system on the foreign subsidiary: the implication for open innovation Rodrigues, Margarida Multinational Subsidiary Strategy Institutional environment Management control system |
| status | SINGLETON |
| subject.fl_str_mv | Multinational Subsidiary Strategy Institutional environment Management control system |
| title | The impact of strategy, environment, and the management system on the foreign subsidiary: the implication for open innovation |
| title_full | The impact of strategy, environment, and the management system on the foreign subsidiary: the implication for open innovation |
| title_fullStr | The impact of strategy, environment, and the management system on the foreign subsidiary: the implication for open innovation |
| title_full_unstemmed | The impact of strategy, environment, and the management system on the foreign subsidiary: the implication for open innovation |
| title_short | The impact of strategy, environment, and the management system on the foreign subsidiary: the implication for open innovation |
| title_sort | The impact of strategy, environment, and the management system on the foreign subsidiary: the implication for open innovation |
| topic | Multinational Subsidiary Strategy Institutional environment Management control system |
| topic_facet | Multinational Subsidiary Strategy Institutional environment Management control system |
| url | https://hdl.handle.net/1822/72631 |
| visible | 1 |