Exploring the Relationship between Potential Opportunism and Control Mechanism of Subsidiary in MNC – A Case Study of Taiwanese Multinational

• Main Authors: Chen,Lichen, 陳俐臻
• Other Authors: Huang, Kuangchung
• Format: Others
• Language: zh-TW
• Published: 2011
• Online Access: http://ndltd.ncl.edu.tw/handle/98854121353272273736

碩士 === 開南大學 === 商學院碩士在職專班 === 99 === With the great competition of global economy, the business environment has more uncertainty and potential crisis and risk. How to managing risk become one of the most important tasks in modern business. In 21 century, with the more challenges of globalization, enterprises allocate their activities at different geographical areas in order to acquire the maximization of resource efficiency, which has become one of the important strategies in contemporary business. On the other hand, these strategies not only bring more managerial challenge and potential risk to the focal business, but also increase the importance of internal audit and internal control. Internal control may help the administrator to organize the transformation and innovation, and then improve the performance for their business, in order to keep the competition advantages of enterprises. In COSO Report (1992) point out, the internal control can't play its anticipated performance because its inherent limitation. Therefore, how to use the internal control and audit mechanism to strengthen control system inside enterprises has become an important subject that is worth probing into. The research aims at probing into the managerial mechanism among parent company and its subsidiaries in a multinational enterprise and how the parent company strengthen control capability to the subsidiary by business change. Through the in-depth case study, this study speculates the situation factors of potential opportunistic behavior on every functional manager of MNC’s subsidiary, and proposes some propositions and strategies for eliminate the opportunism in order to offer reference while managing the subsidiary.