European and Japanese Multinational Companies in China: Organization and Control of Subsidiaries

The control of their subsidiaries by multinational companies (MNCs) is regarded in academic literature as a multidimensional process. Specificities of Japanese, as compared to American and European, management practices have quite often been emphasized, including in the field of international management. On the basis of a large-scale survey, this contribution investigates the organization and control of subsidiaries in China by Japanese and European MNCs. Only a small number of significant differences appear, regarding mainly expatriation policies and training of local staff. Such differences seem to be mainly related to geography (Japan being close to China, while Europe is not) and to the delocalization strategies of Japanese MNCs over the last 10 years; and less so to cultural differences, as is often suggested.