Eleven studies cover Finnish multinationals; However, none of them focus on the nationality of the seat. The application of financial and non-financial measures (7 studies) in this region seems to attract considerable interest. Supervisory priorities of multinational enterprises over other countries of origin are lacking. French multinational companies were the subject of seven studies, only two of which dealt explicitly with the nationality of the headquarters. French MNEs tend to be centralized and rely on process controls (Schaaper et al., 2011). Al-Husan and James (2003) found different manifestations of centralization in the Jordanian subsidiaries of two French multinationals, suggesting a strong influence of corporate culture or other contextual factors. Budgets appear to be lower than in German companies (Hoffjan et al. 2012). While previous case studies suggest that French multinational use expatriates to control their operations abroad (Al-Husan and James, 2003; Avison and Malaurent, 2007), Schaaper et al. (2011) noted that in recent years, the employment of expatriate managers has been replaced by the training of local staff, mainly for cost reasons. Despite the common economic area and geographical proximity, CM is not homogeneous among European multinationals (Harzing and Sorge 2003). Common results are therefore rare: European multinationals tend to concentrate on innovation actions (Borkowski 1999). Centralization tendencies appear to be weaker in European firms than in US multinationals (Williams and van Trieste 2009), and the use of expatriates appears to be common, but to a lesser extent than in Japanese multinationals.
European firms are more likely to recruit and train local workers (Jaussaud and Schaaper, 2006; Pudelko and Tenzer, 2013). 37 studies focus on multinational companies based in Europe and examine centralisation (13.35%) and PMS and incentives (17.49%). While the introduction of management information systems is the subject of seven European studies, this topic seems to be of minor importance to the American researchers contributing to two case studies. Social control is examined in 20 articles (54%) and seems to be more relevant in Europe than in the United States. In the absence of a recent study comparing multinational companies in Europe, the impact of recent developments such as the European single market or the harmonisation of legal standards is unclear. Process controls were of little importance in early studies, but have been continuously studied in qualitative and quantitative studies since the late 1990s. Articles on centralization and decision-making rights were mainly published between 1999 and 2009. Since 2002, the introduction of management information systems has been the focus with eleven contributions. So far, this area of research has only been explored with qualitative research designs. Early work focuses on implementation issues that arise due to different cultures, languages or skills (Avison and Malaurent, 2007; Moilanen, 2007; Sheu et al., 2004). These topics seem to have lost their relevance and disappeared from research after 2007, when management information systems were systematically implemented in multinational companies. The introduction of such systems has two main effects: on the one hand, it facilitates the management of overall activities and reduces information asymmetries between headquarters and subsidiaries through monitoring and standardization.
On the other hand, it restricts the decision-making rights of branch managers and reinforces centralization tendencies (e.g., Finnegan and Ni Longaigh 2002; Quattrone and Hopper, 2005). For process control, in turn, the nationality of the head office (e.g., Chow et al., 1999; Van der Stede, 2003) and environmental uncertainty (e.g., Gencturk & Aulakh, 1995; Mongiello and Harris, 2006) were researched. Cultural distance (e.g., Crespo et al., 2014; Richards, 2000) and interdependence between business units (e.g., Du et al., 2013; Martinez and Jarillo, 1991) appear to be equally important in explaining process control. In the late 1990s, qualitative studies increasingly focused on the legal and policy environment. Contributions examine legal and policy influences in emerging markets (Beard and Al-Rai 1999; Moilanen, 2007; Taylor, 1999); other studies focus on tax compliance requirements in the United States and Europe that lead to corporate transfer pricing policies (Cools et al., 2008; Cools and Slagmulder, 2009; Plesner Rossing, 2013). Host governments can also soften the tide for multinationals by offering significant support to R&D efforts. For example, ITT`s European telecommunications equipment subsidiaries have received major research contracts and grants from host governments on condition that they develop equipment that meets local needs. Similarly, Valvo (Philips` German electronic components subsidiary) has received substantial subsidies from the German government, fearing Japanese competition in the television industry, to support the development of very large-scale integration circuits for colour televisions. Compliance with international organizations should be tailored to the organization and take into account all factors influencing the organization`s risk profile. Considerations include U.S.
government enforcement priorities, past compliance issues within the organization, industry risks and trends (including whether the U.S. government appears to be targeting the industry for a particular jurisdiction), and recent changes in the scope of the organization`s activities. Such changes are common vulnerabilities if they are not reflected by changes in compliance monitoring.
