Managing tensions to integrate a global organisation (GO): A subsidiary’s perspective

Authors:
Tracy Lu, AUT University
Zahir Ahmed, AUT University

Abstract: This study examines performance management systems (PMS) within a global subsidiary company. Global organisations (GOs) are substantially different from regional organisations owing to their complexity and heterogeneity. Although the management accounting literature has reviewed many characteristics of PMS in organisations generally, very few studies explore the characteristics of PMS in integrating GOs. The case study method used for this study investigates the interaction between organisational context and organisational actions. The findings of the study suggest that the PMSs used in integrating GOs are different from those used in organisations generally, and are characterised by certain features. The study reveals that the case study organisation chose to adopt specific PMS to manage the tensions typically involved in integrating GOs. It also identifies that although the GO studied coordinates and integrates for global competitiveness, it does not ignore the importance of local adaption.