Interpersonal trust and control behaviour of Chinese managers

Ekanayake, Samson 2005, Interpersonal trust and control behaviour of Chinese managers, in 2005 Australia and New Zealand International Business Academy (ANZIBA) Conference Proceedings, Monash University, Melbourne, Vic., pp. 1-17.

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Title Interpersonal trust and control behaviour of Chinese managers
Author(s) Ekanayake, Samson
Conference name Australia and New Zealand International Business Academy. Conference (2005: Melbourne, Vic.)
Conference location Melbourne, Vic.
Conference dates 10-11 November 2005
Title of proceedings 2005 Australia and New Zealand International Business Academy (ANZIBA) Conference Proceedings
Editor(s) Alam, Quamrul
Publication date 2005
Conference series Australia and New Zealand International Business Academy Conference
Start page 1
End page 17
Publisher Monash University
Place of publication Melbourne, Vic.
Summary Interpersonal trust is believed to influence the management and control of organisations in China. China's importance as a host country for foreign direct investments (FDIs) through multinational company subsidiaries (MNCs) and international joint ventures (IJVs) is growing rapidly. MNCs and INs located in China often employ local Chinese managers to control their subsidiaries or ventures. This makes it essential for designers of management control systems to have an understanding of the interpersonal trust-sensitive control behaviour of Chinese managers. One of the important aspects of control behaviour is how managers control their subordinates.

This paper examines the relationship between Chinese managers' trust in subordinates and their (Chinese managers') control behaviour towards the subordinates. On the basis of a questionnaire survey of a cohort of managers from Beijing, the study explores the effects of trust on the use of social controls, formal controls, and monitoring.

The findings of this study indicate that a manager's high (low) trust in a subordinate is associated with a low (high) level of monitoring, a high (high) level of social control and a high (low) level of perceived performance. The hypothesis that a superior's high (low) level of trust is associated with a low (high) level of reliance on formal controls was not supported. These findings, while indicative of control behaviour of Chinese managers in particular, also add to the growing academic literature on trust and control in general. In a practical sense, an
understanding of the trust-sensitive control behaviour of Chinese managers is particularly useful in designing and implementing effective control systems for international organisations operating in China.
ISBN 9780732622824
0732622824
Language eng
Field of Research 150105 Management Accounting
HERDC Research category E1 Full written paper - refereed
Persistent URL http://hdl.handle.net/10536/DRO/DU:30005775

Document type: Conference Paper
Collection: School of Accounting, Economics and Finance
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