Influences on the cross-cultural transferability of management control systems : the case of major Taiwanese information technology multinationals
Huang, Cheng-Li (1999) Influences on the cross-cultural transferability of management control systems : the case of major Taiwanese information technology multinationals. PhD thesis, University of Warwick.
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Official URL: http://webcat.warwick.ac.uk/record=b1367931~S1
This study attempts to explore how national culture, leaders' financial control
factors, and other situational factors affect the transference of management control
systems (MCSs) within MNCs. If national cultural factors are important, then a
"fitting" policy may be better than a "shared" policy and the corporation would take
into account the host national culture and so adjust its MCSs in foreign operations.
However, if a firm's leader keeps tight financial control, then a "shared" policy may be
maintained and its headquarters can more easily transfer its system to its foreign
operations. In addition, some situational factors of the overseas operation could affect
the transference of MCSs from headquarters. This study not only controls for some
contingencies but also carefully selects relevant situational factors to observe the
relationship between MCS transfer and those contingencies.
This research uses the comparative case study method with a qualitative
approach to explore the relationships of MCS transfer and national culture, leaders'
financial control factors and other situational factors. In particular, the study strongly
emphasises the elements of national culture and financial control factors. For
achieving the research purposes, four main propositions in the research are explored.
Using Hofstede's cultural dimensions, the first proposition compares the MCSs
of Taiwanese and European operations of four Taiwanese case firms. However, only
five out of the ten components of MCSs are shown to be influenced by cultural
factors. Within a MNC, national culture may often be imbedded in relevant
contingencies. The second proposition representing the relationships between national
culture and leaders' financial control factors was also examined, but these
relationships were not found to be strong in this research.
A leaders' financial control style is based on operating philosophy representing
special management values. The third proposition, the relationship between leaders'
financial control style and the transference of MCSs, showed a strong relationship.
Overall, except for the rewarding process, the leaders' financial control factors had
obvious impacts on the transference of MCSs.
Four situational factors including size, age, approach to acquisition, and
business focus of European operations were observed in the research. The fourth
proposition assesses whether these factors will significantly affect the transference of
MCSs from Taiwanese operations to European operations. The results show that
significant impacts from the factors of size and business focus exist.
The main conclusions from the research are, firstly, that the higher the degree
of the leaders' financial control in a MNC, the more the MCSs were transferred to
overseas operations, and vice versa. Secondly, the higher the degree of financial
control in one MNC, the lower the impact of MCS design from host cultural factors,
and vice versa. Finally, the more favourable the situational environment in a firm's
overseas operation, the more the MCSs could be transferred to the operation.
|Item Type:||Thesis or Dissertation (PhD)|
|Subjects:||H Social Sciences > HF Commerce|
|Library of Congress Subject Headings (LCSH):||International business enterprises -- Taiwan, Computer industry -- Taiwan, Corporations -- Sociological aspects, Management -- Taiwan, National characteristics, Taiwan|
|Official Date:||January 1999|
|Institution:||University of Warwick|
|Theses Department:||Warwick Business School|
|Supervisor(s)/Advisor:||Gray, S. J. ; Arnott, David, 1952-|
|Extent:||xvii, 330 p.|
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