Control exercised by U.S. multinationals over their overseas affiliates: Does location make a difference?

Using data collected through personal interviews with senior managers at U.S. multinational headquarters and their U.K., Thai, Malaysian, and Singaporean affiliates, this study examines whether U.S. multinationals adjust the amount of control they use over their culturally different overseas affiliates. Results showed no overall difference in the amount of control that U.S. multinationals exercise over their U.K. and Southeast Asian affiliates. However, differences emerged between these two cultural groups when industry and affiliate top manager type were taken into account. In particular, U.K. locally run affiliates were given significantly more autonomy than their Southeast Asian counterparts. Locally run affiliates in both countries were also given significantly greater autonomy than were expatriate-run ones. Consumer goods affiliates in Southeast Asia enjoyed more autonomy than the industrial affiliates did.