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The characteristics of subsidiaries are important factors in the control of mother and child companies, but there is no empirical test for this problem. According to the existing research, parent-subsidiary control can be defined as the process of the parent company’s designing and implementing control modes or mechanisms to influence its subsidiaries and other branch members to achieve its strategy. This article will focus on the influence on the degree and methods of control in such aspects as the scale, maturity, and strategy of a subsidiary. Generally, the larger a subsidiary, the stronger its operations, then company executives will seek to reduce dependence on the parent company. There is no fixed pattern in enterprise group ’s management and control, which should vary with changes in organizational structure and management methods. Through questionnaire survey, this paper analyzes the influence of the size of subsidiaries, business maturity and business strategy on group control. The study found that the larger the subsidiary, the more the parent company should have formal control; The larger the difference in the subsidiary’s business strategy, the more the parent company should reduce the degree of control, and the more informal control is used. The relationship between business maturity and group control is not verified.

Abstract

1. Introduction

2. Literature Review

3. Research Design

4. Empirical Results Analysis

References