Issue of control in the multinational companies has been very much
debated by the scholars in the area of international business. The changes
in global competitive environment have lead to changes in the
headquarters-subsidiary relationship. Control has been typified less by
chain of command, and more by mutual interdependence, and learning.
Thus, the issue of control in multinational firms and the future research
direction in this area are discussed in this paper. In so doing, the types
and forms of prevailing multinational firms and the forms of control are
elaborated. The processes of transfers of management practices especially
that of management control practices are also discussed in terms the
factors influencing the transfer process, the transfer mechanism, and the
effects of transfer.
