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Control in the multinational enterprise: The polycentric case of global professional service firms

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  • Boussebaa, Mehdi

Abstract

This paper contributes to research on control in multinational enterprises (MNEs) by considering the case of global professional service firms (GPSFs). Drawing on fieldwork in four firms, it argues that GPSFs are seeking greater control over their subsidiaries in order to provide integrated cross-national services to global clients and, in the process, are becoming subject to a center-subsidiary tension similar to that observed in more conventional MNEs. However, and importantly, the paper also argues that the center-subsidiary tension operates differently in GPSFs. This is because central control in this particular context is pursued by not only headquarters but also subsidiaries based in core economies where major global clients are headquartered. Such polycentric control leads to the center-subsidiary tension expressing itself along not just the vertical (headquarters-subsidiary) axis but also the horizontal (inter-subsidiary) one and, in particular, along core-periphery lines. The research and managerial implications of these findings are discussed.

Suggested Citation

  • Boussebaa, Mehdi, 2015. "Control in the multinational enterprise: The polycentric case of global professional service firms," Journal of World Business, Elsevier, vol. 50(4), pages 696-703.
    • Handle: RePEc:eee:worbus:v:50:y:2015:i:4:p:696-703
    DOI: 10.1016/j.jwb.2014.11.002
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    References listed on IDEAS

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    Cited by:

    1. Mehdi Boussebaa, 2024. "The Big Con: how the consulting industry weakens our businesses, infantilizes our governments and warps our economies," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 55(1), pages 121-123, February.
    2. König, Andreas & Fehn, Angela & Puck, Jonas & Graf-Vlachy, Lorenz, 2017. "Primary or complex? Towards a theory of metaphorical strategy communication in MNCs," Journal of World Business, Elsevier, vol. 52(2), pages 270-285.
    3. Yuliani Suseno & Ashly H. Pinnington, 2018. "Building social capital and human capital for internationalization: The role of network ties and knowledge resources," Asia Pacific Journal of Management, Springer, vol. 35(4), pages 1081-1106, December.
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    5. Biener, Christian & Eling, Martin & Jia, Ruo, 2017. "The structure of the global reinsurance market: An analysis of efficiency, scale, and scope," Journal of Banking & Finance, Elsevier, vol. 77(C), pages 213-229.
    6. Rong (Ratchel) Zeng & Birgitte Grøgaard & Ingmar Björkman, 2023. "Navigating MNE control and coordination: A critical review and directions for future research," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 54(9), pages 1599-1622, December.
    7. Brock, David M. & Hydle, Katja Maria, 2018. "Transnationality – Sharpening the Integration-Responsiveness vision in global professional firms," European Management Journal, Elsevier, vol. 36(1), pages 117-124.
    8. Kuang-Hua Hu & Ming-Fu Hsu & Fu-Hsiang Chen & Mu-Ziyun Liu, 2021. "Identifying the key factors of subsidiary supervision and management using an innovative hybrid architecture in a big data environment," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 7(1), pages 1-27, December.

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