Diffusion of management practices between a local company and a global company: A case study

Abstract

The globalization of markets and their consequent accrued competitiveness means that to become more competitive, companies must seek more efficient and effective methods and processes. On the other hand, globalization and localization have been often described as opposing forces. In this context, this study tries to unveil the local implications of management control practices in a subunit that is a dealer of a global company. Particularly, Melisauto, the subunit of a global company (Toyota) is the field site where management control systems are analysed, under a recursive institutionalization process. A retrospective and in-depth longitudinal case study was carried out at the organization. Fifteen interviews were conducted for data collection, and extensive Melisauto and Toyota documents and management control reports were gathered. The study shows that the global and the local are not opposing forces; they are complementary forces. Indeed, the local adapts to apply the global processes, but in doing so, process improvements are born that influence the global practices, contributing to their standardization.