Study On Management Control Pattern Of Business Group

Currently profound changes in the worldwide productivity, production mode, life style and economy and society development situation are taking place. Business group becomes a dominant organizational form whether in developed or emerging economy. While business groups acquires rapid development and plays important roles in economy, however, diverse phenomena from business practice attract people to give more attentions on conflict of interest and mechanism of management control in business group.In this dissertation, based on the logic of neo-institution and empirical study, the knowledge and methodology of strategic management, contingency management and organization theory are used to probe into choice and effectiveness of mechanism of management control in business group from transitional economy. The roles of contingency factors are investigated in depth. Firstly, formal and informal mechanisms of management control are derived by analyzing the institution environment in transitional economy. Interface of management control between parent and subsidiary is presented in this dissertation. The effect of task characteristics in subsidiary on mechanism choice of management control is investigated by considering task nonroutineness and interdependence. In addition, the roles of resource contribution of parent in mechanism choice are probed into by asset-based resources and knowledge-based resources. Then, this dissertation further explains the conflict mechanism between parent and subsidiary. The effect of conflict between parent and subsidiary on mechanism choice of management control is discovered from the perspective of goal conflict and personal conflict. Through considering the role of external environment, this dissertation probes into the effect of environment uncertainty on mechanism choice of management control. Finally, by explaining the relationship between management control and performance, contingency theory is used to explore the effect of conflict between parent and subsidiary and organizational capacity on the relationship. Hereby, this dissertation constructs the conceptual model and proposes theoretical hypotheses. By running the data and regression analysis from one hundred and sixty six effective questionnaires, the results demonstrate that task characteristics of subsidiary and resource contribution of parent have effects on mechanism choice of management control between parent and subsidiary, and environmental uncertainty and conflict mechanism between parent and subsidiary moderate the effect. Furthermore, conflict mechanism between parent and subsidiary and organizational capacity moderate the relationship between management control and performance. This dissertation does not only play important role in exploring and enriching the theory of business group management control under the indigenous context of China, but research results also have significant implications for the practice of business group management control in other emerging economy.