The Effects of Distances on the Development of Performance Management Systems

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  • 距離が業績管理に及ぼす影響
  • キョリ ガ ギョウセキ カンリ ニ オヨボス エイキョウ

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<p>The objective of this study is to empirically clarify the effects of distances on performance management for the foreign subsidiary. The effects are positive or negative depending on the difficulty and necessity of developing the performance management system. Furthermore, the CEO’s nationality in the foreign subsidiary is concerned with the effect on the point of easing the information asymmetry. We obtained the following results. In full sample, economic, political, and cultural distances non-significantly related to performance management. However, the multi-group analysis showed that the nationality moderated the effect of cultural distance on performance management. More specifically, cultural distance positively related to performance management in case of home country national, on the other hand, in one of parent country national, we found the adverse effects. The results indicate that cultural distance is so important and a personnel distribution is one of necessary management controls in the context of foreign subsidiary management.</p>

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