Exploration of firms' strategic control mechanisms in Australia and the United States: Implications for global governance structures

Keith Duncan*, Timothy Kiessling, Michael Harvey

*Corresponding author for this work

Research output: Contribution to journalArticleResearchpeer-review

1 Citation (Scopus)

Abstract

How much ownership is enough to exert strategic control over partners in the global marketplace? Top management frequently will attempt to have strategic influence over partners when it comes to the strategic direction of the organization. The question becomes, "what gives one partner control over another, and where does that power come from in the relationship?" This research examines the issue of strategic control in organizations in Australia and the United States to determine how to control global relationships. The research found that: (1) ownership is positively related to the degree of strategic control; (2) directness of ownership is positively related to the degree of strategic control; (3) dispersion is negatively related to the degree of strategic control; (4) board membership is positively related to the degree of strategic control; and (5) strategic control between U.S. and Australian organizations/relationships is different.

Original languageEnglish
Pages (from-to)571-587
Number of pages17
JournalThunderbird International Business Review
Volume52
Issue number6
DOIs
Publication statusPublished - Nov 2010

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