The main topic of this study is the analysis of the management control system adopted by large business groups to manage the relationship between companies in order to improve the performance of the entire group. Based upon an extensive literature review and upon the data from four case studies operating in Italy, this study attempts to improve a theoretical framework on control system in groups of companies and in multinational corporations. With the literature review we found that the previous research contributed to building a framework useful for defining the intensity and form of control. Our empirical analysis started from this framework. By applying a qualitative method, we examine four cases that are very relevant in the Italian economic context in order to create new theories on the adoption of a management control system in a group. There were two main results. The first involves the intensity of control: our research confirmed the findings in the literature that the intensity of control of a subsidiary depends on the degree of ownership and on the size of the subsidiary. The second result concerns the design of two elements of the management control system: the administrative function and the information structure. We maintain that the former is also determined by the degree of similarity in the businesses in which the group has invested and by the presence of a local authority which requires detailed information on the group’s activities. Instead, the number of the information systems installed in a group is due to the degree of similarity in the businesses and to the manner and speed of growth.
Management Control Systems in Multinational Corporations: An Exploratory Survey on Italian Business Groups
GUERRINI, Andrea;
2009-01-01
Abstract
The main topic of this study is the analysis of the management control system adopted by large business groups to manage the relationship between companies in order to improve the performance of the entire group. Based upon an extensive literature review and upon the data from four case studies operating in Italy, this study attempts to improve a theoretical framework on control system in groups of companies and in multinational corporations. With the literature review we found that the previous research contributed to building a framework useful for defining the intensity and form of control. Our empirical analysis started from this framework. By applying a qualitative method, we examine four cases that are very relevant in the Italian economic context in order to create new theories on the adoption of a management control system in a group. There were two main results. The first involves the intensity of control: our research confirmed the findings in the literature that the intensity of control of a subsidiary depends on the degree of ownership and on the size of the subsidiary. The second result concerns the design of two elements of the management control system: the administrative function and the information structure. We maintain that the former is also determined by the degree of similarity in the businesses in which the group has invested and by the presence of a local authority which requires detailed information on the group’s activities. Instead, the number of the information systems installed in a group is due to the degree of similarity in the businesses and to the manner and speed of growth.
I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.
