Host Country Resource Availability and Information System Control Mechanisms in Multinational Corporations: An Empirical Test of Resource Dependence Theory.

Author List: RAO, MADHU T.; Brown, Carol V.; PERKINS, WILLIAM C.;
Journal of Management Information Systems, 2007, Volume 23, Issue 4, Page 11/28/2017.
The management of the information systems (IS) function is a complex task, particularly in the case of multinational corporations (MNCs), where installations dispersed across distance, time, and cultures can lead to diverse and incompatible systems spreading among foreign subsidiaries. The need to globally control and coordinate the IS management function is often met with resistance from local IS managers, who may perceive corporate standards as intrusive. Resource dependence theory (RDT) argues that control is made easier when a subsidiary unit is dependent on corporate headquarters for critical resources. This study examined the IS management relationship and the use of various mechanisms of control (formal and informal) between 54 headquarters--subsidiary pairs spread across 19 countries of varying resource-richness. While RDT appears to be valid when subsidiaries are dependent on MNC headquarters for resources, the expected relationship between the mechanisms and host country IS resource availability was not observed. Although there was a significant relationship with the use of informal mechanisms and IS resources, it was in the opposite direction to what would be expected by RDT.
Keywords: canonical correlation; control mechanisms; multinational; resource dependence
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#150 0.244 issues management systems information key managers executives senior corporate important importance survey critical corporations multinational managing interviews study results concerns
#214 0.133 resource resources allocation chargeback manager effectiveness problem firms case gap allocating diverse dependence just bridge cooperative criticality acquisition duplication extent
#256 0.133 coordination mechanisms work contingencies boundaries temporal coordinating vertical associated activities different coordinate suggests dispersed coordinated horizontal relative demand spatial hours
#280 0.128 control controls formal systems mechanisms modes clan informal used internal literature outsourced outcome theory configuration attempts evolution authority complementary little
#193 0.115 time use size second appears form larger benefits combined studies reasons selected underlying appear various significantly result include make attention
#209 0.090 results study research information studies relationship size variables previous variable examining dependent increases empirical variance accounting independent demonstrate important addition
#291 0.071 local global link complex view links particularly need thought number supports efforts difficult previously linked achieving simple poor individual rise