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Control in less-hierarchical multinationals: The role of personal networks and informal communication

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  • Marschan, Rebecca
  • Welch, Denise
  • Welch, Lawrence

Abstract

The principal aim of this paper is to examine the presumption that a higher degree of decentralization, accompanied by a reduction in hierarchical levels, leads to intensified and effective horizontal communication across units and organization levels. It is argued that, in fact, personal networks and informal communication within the decentralized MNC can be distorted, even damaged by the structural changes, and the informal processes may actually work against the intended communication flows. The nature of both personal networks and informal communication makes control difficult yet, given the importance, MNCs inevitably utilize a variety of approaches in an attempt to influence their operation, sometimes in a counter-productive way.

Suggested Citation

  • Marschan, Rebecca & Welch, Denise & Welch, Lawrence, 1996. "Control in less-hierarchical multinationals: The role of personal networks and informal communication," International Business Review, Elsevier, vol. 5(2), pages 137-150, April.
    • Handle: RePEc:eee:iburev:v:5:y:1996:i:2:p:137-150
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    References listed on IDEAS

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    1. William G. Egelhoff, 1993. "Information-processing Theory and the Multinational Corporation," Palgrave Macmillan Books, in: Sumantra Ghoshal & D. Eleanor Westney (ed.), Organization Theory and the Multinational Corporation, chapter 8, pages 182-210, Palgrave Macmillan.
    2. Hugh Willmott, 1993. "Strength Is Ignorance; Slavery Is Freedom: Managing Culture In Modern Organizations," Journal of Management Studies, Wiley Blackwell, vol. 30(4), pages 515-552, July.
    3. Jon I Martinez & J Carlos Jarillo, 1989. "The Evolution of Research on Coordination Mechanisms in Multinational Corporations," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 20(3), pages 489-514, September.
    4. Daniel Ondrack, 1985. "International Transfers of Managers in North American and European MNEs," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 16(3), pages 1-19, September.
    5. Welch, Denice E. & Welch, Lawrence S., 1993. "Using personnel to develop networks: An approach to subsidiary management," International Business Review, Elsevier, vol. 2(2), pages 157-168.
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    1. Marschan-Piekkari, Rebecca & Welch, Denice & Welch, Lawrence, 1999. "In the shadow: the impact of language on structure, power and communication in the multinational," International Business Review, Elsevier, vol. 8(4), pages 421-440, August.
    2. Denice E. Welch & Lawrence S. Welch, 2008. "The importance of language in international knowledge transfer," Management International Review, Springer, vol. 48(3), pages 339-360, May.
    3. Piekkari, Rebecca & Welch, Denice Ellen & Welch, Lawrence Stephenson & Peltonen, Jukka-Pekka & Vesa, Tiina, 2013. "Translation behaviour: An exploratory study within a service multinational," International Business Review, Elsevier, vol. 22(5), pages 771-783.
    4. Henry Wai-Chung Yeung, 2000. "Embedding Foreign Affiliates in Transnational Business Networks: The Case of Hong Kong Firms in Southeast Asia," Environment and Planning A, , vol. 32(2), pages 201-222, February.
    5. Henry Wai-chung Yeung & Jessie Poon & Martin Perry, 2001. "Towards a Regional Strategy: The Role of Regional Headquarters of Foreign Firms in Singapore," Urban Studies, Urban Studies Journal Limited, vol. 38(1), pages 157-183, January.

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