An empirical investigation of the relationship between task integration, effort allocation, control and governance mode of foreign operations

Abstract

Control of foreign marketing activities is a serious challenge for marketing managers involving both gaining control over independent distributors as well as the division of control between home and foreign office managers. Existing research has mostly assumed that high equity modes provide greater control for the organization compared to the use of nonequity modes. In this study, we suggest that home office control of marketing tasks is influenced not only by entry mode but also by task characteristics. More specifically, this study provides a preliminary empirical assessment of how home office control of marketing tasks in foreign markets varies over alternative modes of entry, different marketing tasks performed, and in relation to different levels of home office managerial time and effort dedicated to monitoring such tasks.