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The Importance of National Culture in the Design
of Management Control Systems:
Evidence from Morocco and Italy
--Mouhcine Tallaki and Enrico Bracci
The parent company, with the intention of promoting a similar philosophy within the group, tends to transfer its Management Control Systems (MCSs) to the foreign subsidiary (Schneider, 2006). Having a shared management philosophy could increase efficiency, reduce communication time and contribute to the success of corporate strategy (Roth et al., 1991). However, management theories developed in one culture cannot be easily exported to other cultures, because national culture is important for management style. This study seeks to investigate to understand the behavior of the parent companies and how the national culture is important in the design of MCSs. The approach adopted is qualitative involving two case studies of Italian companies that have a subsidiary in Morocco. The results confirm the importance of national culture in the design of MCSs and also show that culture is underestimated by the parent company. The results also show the emergence of hybrid MCSs that combine two different cultural values.
© 2015 IUP. All Rights Reserved.
The Influence of HR Practices on Business
Strategy and Firm Performance:
The Case of Banking Industry in Iran
--Azhdar Karami, Samira Sahebalzamani and Babak Sarabi
This paper attempts to examine the influence of six principal Human Resource (HR) practices—training and development, teamwork, incentives, HR planning, employment security, and performance appraisal—on the relationship between business strategy and firm performance by using data obtained from private banks in the Iranian city, Tabriz. Porter’s generic strategies are used to measure business strategy and balanced scorecard is applied for measuring organizational performance. The results show that there is a close relationship between business strategies and HR practices; HR practices have a positive effect on firm performance; business strategy has a positive effect on organizational performance, and also there is a positive relationship between integrated HR practices and business strategy and firm performance. Therefore, it could be concluded that applying suitable HR practices corresponding to firms’ strategies will result in improving organizational performance.
© 2015 IUP. All Rights Reserved.
Financial Performance of Select FMCG Companies
in India During the Post-Liberalization Period:
A Study
--Kaushik Chakraborty and Debasish Sur
During the last two decades, deregulation, globalization and liberalization measures adopted by the central government have made a paradigm change in the FMCG sector. In the post-reform period, foreign direct and portfolio investments in Indian FMCG sector have notably influenced the financial performance of the companies belonging to this fourth largest sector in the Indian economy. The present study seeks to measure the changing status of the overall financial performance of 16 selected companies in the Indian FMCG sector. In order to identify the change with respect to financial performance more accurately, the entire study period from 1993-94 to 2012-13, i.e., 20 years, has been subdivided into two phases (Phase I representing the period from 1993-94 to 2002-03 and Phase II representing the period from 2003-04 to 2012-13). Any improvement or deterioration with respect to overall financial performance of each company has been measured by making a comparison between the overall financial performance of Phase I and Phase II, by using relevant statistical techniques and tests.
© 2015 IUP. All Rights Reserved.
Book Review
CK Prahalad: The Mind of the Futurist – Rare Insights
on Life, Leadership and Strategy
--Benedict Paramanand
Reviewed by
AJ Sebastian sdb
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