Study On The Influence Factors Of The Parent-subsidiary Corporations’ Cultural Control

The rapid development of enterprise group results in management control problem which always exist. Cultural control of parent-subsidiary corporations as a new control method can effectively promote coordination and communication between parent and subsidiary companies, which also can give full play to economies of scale and synergies of the enterprise groups. In the process of cultural construction, the parent company is facing a lot of practice management and control problems, such as how to deal with coordination between different cultures, how to grasp and contribute to the cultural development. So, researching some influence factors how to affect on parent-subsidiaries’culture control has important practical and theoretical significance.This article is based on the perspective of participant of group culture controls, respectively from the perspective of the parent and subsidiary company, which finally build the theoretical model of the cultural control influence factors. It selects six large enterprise groups as sample, using method of the Structural Equation Model and multiple regression analysis, carries on data verification on the above theoretical model. The results show that the culture controls has complex mechanism and numerous influence factors, such as mode of group control, relevance among subsidiaries, innovation spirit of subsidiary, business similarity among subsidiaries, the parent company attaching great importance to the cultural management, which have a direct impact on the level of parent-subsidiary cultural control. Firstly, in terms of mode of group control, the more the group’s financial control, the smaller the culture control strength of parent company to subsidiary companies; the more the group’s strategy control, the bigger the culture control strength of parent company to subsidiary companies; the more the group’s operation control, the bigger the culture control strength. Secondly.in the aspect of relevance among subsidiaries, the more subsidiaries contact, the bigger the culture control strength. Thirdly, in the aspect of subsidiaries’ innovation spirit, the stronger the innovation spirit, the greater the degree of culture control. Fourthly, in the aspect of parent company’s attention to the cultural management, the less attention the group companies pay to subsidiary companies, the smaller the degree of culture control. Fifthly, on business similarity among subsidiaries, the higher the subsidiary business similarity is, the greater the degree of culture control.