When the Interests of the Overseas Subsidiary and the Parent Company are in Conflict : The Effect on Evaluating the Performance of Overseas Managers

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概要

• 論文の詳細を見る

• The interests of the parent company are sometimes in direct conflict with foreign subsidiaries. The conflict sometimes occurs due to certain characteristics of the performance evaluation systems in place. In particular, the performance of the foreign subsidiary and its employees should be evaluated keeping in mind the sacrifices that are sometimes made for the overall benefit of the company. This is not only restricted to issues such as transfer pricing but also issues such as how much freedom of control and choice the managers have in choosing suppliers. The latter is often a conflict between the desire of the local subsidiary to control costs and the desire to the parent company to maintain good relations with a major supplier. This is particularly true in the case of Japanese MNCs, which commonly have long-term relationships with main suppliers and sometimes cost (or the substantive value) of transactions are secondary to maintaining relationships. I have encountered numerous such cases with Japanese MNCs in the process of carrying out field-research interviews as well as while conducting cross-cultural management seminars at certain Japanese MNCs. This paper discusses the issue and suggests ways to deal with problems that may arise in relation to performance evaluation systems.

• 九州産業大学の論文

著者

• Timothy Dean

  九州産業大学経営学部

関連論文

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