Formal control of the Japanese multinational companies to their subsidiaries in the UK

This paper deals with the patterns of relationship that develop among the parent companies in Japan and their overseas subsidiaries. It attempts to offer a totally new view by constructing a three‐fold model to examine the existing relationship on an organizational, strategic and informational level. The model is linked and seen under the light of the means of formal control applied. Formal control has always taken a second role to the research of Japanese management accounting techniques. This is even more obvious when we investigate the issue of formal control. Culture usually becomes the center of attention when it comes to Japanese management. This research attempts to give a careful look to this usually underrated and overlooked issue. Thus, based on the multidimensional model constructed the formal means of control applied are examined.