The Relationships Between Control Mechanisms And Subsidiary's Performances

There has been a profound evolution in thinking about global enterprise during the past 10 years in Taiwan. As these overseas subsidiaries grew in size and developed their own unique resources, however, it became apparent to many researchers that corporate headquarters was no longer the sole source of competitive advantage for the global enterprise. Therefore, scholars developed model such as the heterarchy and transnational to reflect the critical role played by subsidiaries. Furthermore, global expansion into countries with one or more of these will require global enterprise to pay added attention to how they control subsidiary. These environmental factors, internationalization stage and the typology of subsidiary roles are reviewed and synthesized into a integrative model to help global enterprise diagnose these influences and choose the appropriate control mechanisms.The purpose of this research is to develop a management framework at the subsidiary level in global enterprise. In this framework, we categorize global enterprise strategic role, organizational configuration and control mechanisms at the subsidiary level and investigate the relationships between them. Then, the analysis of the determinants of global enterprise strategic role, organizational configuration and control mechanisms are undertaken. Finally, the relationships of business performances with subsidiary's environmental factor, subsidiary's management factor, strategic role, organization configuration and control mechanisms are also investigated.Using a sample of Taiwanese global enterprise which has subsidiaries operating in oversea, we test a set of hypotheses among the variables. The results reveal that there are significant relationship between strategic role (including degree of integration and degree of localization), organizational configuration (including degree of resource dependence and degree of delegation) and control mechanisms (including personnel management, training & development, administration management, culture management and performance management control). However, their relationships are also moderated by cultural differences. Additionally, using the Logistic regression we shows that degree of integration, degree of localization, the degree of resource dependence are among the most significant impact factors for the systems of control combinations.Furthermore, subsidiary's entrepreneurial culture, personnel management control,training & development control have positive effects on subsidiary's perceived objective actualization. Finally, degrees of integration, culture management control and performance management control have positive effects on subsidiary's perceived activity satisfaction.