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Exploration of firms' strategic control mechanisms in Australia and the United States: Implications for global governance structures
Author(s) -
Duncan Keith,
Kiessling Timothy,
Harvey Michael
Publication year - 2010
Publication title -
thunderbird international business review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.553
H-Index - 37
eISSN - 1520-6874
pISSN - 1096-4762
DOI - 10.1002/tie.20380
Subject(s) - strategic control , control (management) , corporate governance , business , strategic leadership , strategic planning , strategic financial management , strategic thinking , strategic management , strategic alignment , industrial organization , marketing , management , economics , finance
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. © 2010 Wiley Periodicals, Inc.