Control and Trust in Parent-Subsidiaries of MNCs: an Emprical Research in China
This study examine the relationship between control and trust within transnational parent-subsidiary company-on the basis of a survey of 156 subsidiary companies operating in China,using canonical correlation analysis method to analyze the data.The hypothesis is that control and trust showed a negative correlation relationship between parent companies and subsidiary companies.And the result shows the hypothesis mentioned above is validated.Combined domestic and international research,this paper argues that trust and management control are supplementary.In natural status,trust and management control showed a negative correlation relationship between parent companies and subsidiary companies.Moreover,as trust and control are independent variables in a specific company,they can not predict each other.Besides,since they supplement each other,this paper proposes that parent-companies should enhance the level of trust in parent-and-subsidiary to replace some controls in order to reduce cost of control,so that the probability that the subsidiaries will do as the parent companiesexpectations will be raised.
Parent-and-Subsidiary Trust Control canonical correlation analysis
CAO Zhoutao MA Junxu
School of Business Administration,South China University of Technology,Guangzhou,510640
国际会议
Interantional Conference on Idustry Cluster Development and Management(2008产业基地建设与管理国际研讨会)
常州
英文
944-949
2008-06-27（万方平台首次上网日期，不代表论文的发表时间）