Management Control in Internationalized Brazilian Companies

Abstract

The objective of this study is to determine whether the internationalization of a company’s operations has an impact on its management control systems. Using the case study methodology, the article analyzes four cases of Brazilian companies with international activities. The research was guided by the premise that, as the geographical scope of a company’s operations enlarges, its administrative complexity also grows—demanding the adoption of new and more sophisticated controls systems. The literature on management control (see Anthony and Govindarajan, 1998; Dyment, 1987; Gomes and Amat, 1999; Maciariello and Kirby, 1994; Merchant, 1998, among others) provides a relatively similar treatment to the subject of management control of internationalized companies. Evidences collected in cases indicate that in certain situations or instances, the expected goal of management control systems in the new context, as well as its sophistication, may not be achieved.

Keywords

Management control developing countries business strategy internationalization

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