Control and Autonomy of Foreign-Controlled Companies in Malaysia

Hamdan Ariffin, June M. L. Poon, Raja Azimah Ainuddin

Abstract


This study examines the type and degree of control exercised by American, British, European, and Japanese multinational companies over their subsidiaries in Malaysia. Results of the study indicate diferences in control patterns among the four subsidiary groups. While Japanese and European parent companies were more likely to use expatriate control, American and British companies tended to rely more on financial performance reports. The subsidiaries under study were also found to have more autonomy in making decisions on matters related to personnel, production, and research. Marketing and finance decisions were more centralized. Finally, the study found an inverted-U relationship between autonomy and size of a parent company's international operations but no significant relationship between autonomy and subsidiary size. 

ABSTRAK

Kajian ini menyelidiki jenis dan peringkat kawalan yang diamalkan oleh syarikat multinasional Amerika Syarikat, British, Eropah dan Jepun ke atas anak-anak syarikat mereka di Malaysia. Hasil kajian ini menunjukkan perbezaan dalam pola-pola kawalan antara 4 kumpulan anak syarikat ini. Syarikat-syarikat Jepun dan Eropah lebih menaruh kepercayaan kepada pegawai dagang untuk mengawal anak syarikat mereka, sedangkan syarikat-
syarikat Amerika Syarikat dan British lebih bergantung kepada laporan prestasi kewangan. Anak-anak syarikat yang dikaji juga didapati mempunyai lebih banyak autonomi dalam hal-hal personel, pengeluaran dan penyelidikan. Keputusan berkaitan dengan pemasaran dan kewangan dikawal lebih ketat oleh syarikat induk.Akhirsekali,kajian ini mendapati perhubungan U-songsang antara autonomi dan saiz operasi antarabangsa. Walau bagaimanapun, saiz anak syarikat didapati tidak mempunyai pengaruh yang bererti ke atas autonomi. 


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