The Control Methods On Overseas Subsidiaries In MNCs

This study attempts to fill the gap in the literature by providing an integrative research framework through extensive literature review on modern control theory and oversea management to identify the relationship between the inner&external environment and the performance of control, especially in the private SMEs of Zhejiang Province in China. On the basis of Organization Control Theory, there are three control methods in the MNCs of Zhejiang: behavior control, out-put control and clan control. These control methods were used to explain how the environment can infect the performance of control.The population is the top 500 firms of China listed in the Government Issuer. A random stratified sampling method was used. 60 questionnaires were got, and in 46 responses were received but 10 were incomplete. The remaining 36 valid questionnaires represent a useable response rate of 60.0%.The major finding of the research includes:1 , The more environment uncertainty of finance, client, competitor, and the character of motivation of International, scale, and the core competence of capacity, the more behavior control level firms likely adopt. The more environment uncertainty of technology, the character of International experiments, and the core competence of R&D, the less behavior control level firms will adopt.2, The more environment uncertainty of law, competitor, the character of motivation of International, scale, and the core competence of marketing, capacity, the more output control level firms likely adopt. The more environment uncertainty of technology, and the character of International experiments, the less output control level firms will adopt.3 , The more environment uncertainty of law, politics, clients, and the core competence of R&D, the more clan control level firms likely adopt. The more environment uncertainty of finance, scale, and the core competence of marketing, capacity, the less clan control level firms will adopt.4, Only medium level of behavior control can lead to best control performance.5, The more level of out-put control, the better control performance firms will have.6, Clan control is instability to the control performance and should be adapted to other control methods.7, The different combination of three control methods will lead to different control performance.