Control and co-ordination of Japanese subsidiaries in China: problems of an expatriate-based management system

Jochen Legewie

87 citations0/0 files storedThe International Journal of Human Resource Management

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International Business and FDI International Student and Expatriate Challenges Global and Cross-Cultural Management

Abstract

This paper analyses the international management control (IMC) system that Japanese multinational companies (MNCs) employ to co-ordinate the activities of their subsidiaries in China. It focuses on the role of Japanese expatriates in this IMC system and assesses their performance. In the process, it offers a comprehensive evaluation of the organizational fit of the Japanese IMC model within the current Chinese business environment. Taking Japanese firms as the subject, the analysis identifies areas of incongruity and explains the underlying reasons for problems with expatriate-focused IMC models. In doing so, this paper argues that the Japanese expatriate-based control system in China (as in many other parts of the world) continues to be characterized by an insider-outsider mentality that prevents a real internationalization of overseas operations in the 'transnational' sense.

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References

1997The Knowledge-creating company: How Japanese companies create the dynamics of innovation 1996The knowledge-creating company: How Japanese companies create the dynamics of innovation 1973Designing Complex Organizations 1967Organization and environment 2009Managing Across Borders: The Transnational Solution 1979A Conceptual Framework for the Design of Organizational Control Mechanisms 1984Structure in Fives: Designing Effective Organizations.2007A model of knowledge management and the N-form corporation

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