Abstract
This study builds upon previous control research to propose a model of formal controls used in managing activities performed in foreign markets. Theoretically derived contingency relationships are also proposed to assess the performance consequences of different formal control types. The findings support the importance of internal and external sources of uncertainty in determining the type of control used. Partial support was also found for the premise that the fit between the type of control used and the type of uncertainty perceived will contribute to superior performance.
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*Esra E. Gencturk (Ph.D., University of Minnesota) is an Assistant Professor of Marketing and International Business at the University of Texas at Austin. Her research focuses on marketing management issues in transnational corporations, particularly the management of inter- and intra-organizational marketing exchanges across national border.
**Preet S. Aulakh (Ph.D., University of Texas at Austin) is an Assistant Professor of Marketing at the Faculty of Business Administration, Memorial University of Newfoundland, St. John's, NF A1B 3X5, Canada. His research interests include control mechanisms in international business, interorganizational relationships, and strategic alliances.
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Gencturk, E., Aulakh, P. The Use of Process and Output Controls in Foreign Markets. J Int Bus Stud 26, 755–786 (1995). https://doi.org/10.1057/palgrave.jibs.8490819
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DOI: https://doi.org/10.1057/palgrave.jibs.8490819