The Locus of Decision-Delegation among Japanese Multinational Enterprises: An Empirical Study

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Susumu Ueno Paul Scarbrough

Abstract

This study investigates decision delegation from headquarters to overseas subsidiaries of Japanese MNEs. It examines differences across three decision domains as well as between subsidiary geographic locations. The decision domains are, first, general management decisions related to strategy and management/operations; second, IT systems investment decisions; and third, international transfer pricing. The results showed that, generally, the decision authority for management/operational decisions was more extensively delegated to overseas subsidiaries than decision authority for strategic decisions. The decision delegation for international transfer pricing was found to be low. There were differences between subsidiaries in different geographic locations. In general, the delegation of decision authority for all decision domains was broader to North American and European subsidiaries than to Asian subsidiaries. We show that decision delegation is not a monolithic activity, but a complex activity which is not yet fully comprehended by theory.

Article Details

How to Cite
UENO, Susumu; SCARBROUGH, Paul. The Locus of Decision-Delegation among Japanese Multinational Enterprises: An Empirical Study. Asia-Pacific Management Accounting Journal, [S.l.], v. 6, n. 2, p. 1-26, dec. 2011. ISSN 2550-1631. Available at: <http://arionline.uitm.edu.my/ojs/index.php/APMAJ/article/view/64>. Date accessed: 22 july 2018.
Section
Management Accounting