US subsidiary control in Malaysia and Singapore

Malika Richards, Michael Y. Hu

Research output: Contribution to journalArticlepeer-review

2 Scopus citations

Abstract

Does the kind of control headquarters have over their foreign subsidiaries make a difference? This study examines both formal and informal control of HQ to determine their impact on subsidiary performance. Informal control is operationalized as vertical integrators between HQ and subsidiaries. Measures of both types of control are identified and their relationships with performance are tested using a sample of US multinationals and their subsidiaries in Malaysia and Singapore. Results, based on personal interviews with subsidiary managers, indicate a negative relationship for formal control but a positive one for informal control.

Original languageEnglish (US)
Pages (from-to)71-76
Number of pages6
JournalBusiness Horizons
Volume46
Issue number6
DOIs
StatePublished - Jan 1 2003

All Science Journal Classification (ASJC) codes

  • Business and International Management
  • Marketing

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