We investigate how managers trade off the benefits of delegating authority to their employees with the risk of loss of control. Organizational economics theory identifies specific knowledge of subordinates and monitoring possibilities for the manager as determinants of delegation. Social...

We develop and test a model of multinational corporation (MNC) decentralization in which the allocation of decision rights to subsidiaries is explained by aspects of both internal corporate culture as well as external national cultures. We extend the literature on MNC decentralization by testing...