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Effects Of Liabilities Of Foreignness On Mncs: Agency Relationship Between Subsidiaries & Headquarters

Table 3:

  Parent Country National (PCN) Host Country National (HCN) Principal (P)
Information Asymmetry Institutional Differences PCN-2: Since I know that country better than my managers, I could make much more easy decisions as a result of that information and these were approved by the management. For example, when you ask the managers the same decision for Turkey, they may have very different thoughts, but my opinion was playing a much more dominant role there.PCN-5: It is possible to learn the institutional structure in some way even it is hard. Or, it is possible to overcome the institutional structure differences by taking advantage of the consultants, but corruption and bribery require a separate expertise and it is not very easy to find help. There is corruption in every level in the country I work in, this rules of corruption mechanism requires you to learn an informal structure that is not written. To understand corruption, you must live with corruption. HCN-4: For example, they told me to do the recruitment and dismissal. Don't even ask us. Two years later, they said, let's just see the names. Because they had trouble. They had two labor courts. They saved some property. So disgrace. It is very difficult to manage the lissom mind of the Turkish people. One signature was adequate at their country, but three signatures are being taken side by side in Turkey. I could not tell any foreign companies even Spanish, Portuguese, British, American. You're going to sign three. HCN-5: For example, an American or a European does not know the political situation or social code in Turkey. My job is to explain to them. I give an example; The demands of the government or the customer may not be very meaningful to our top executives. P-3: It is more advantageous to have an HCN in a view angle, where you pass the bureaucracy more quickly. Whether there are bureaucratic obstacles, bureaucratic procedures, we know them more, we can get faster. When it is Turkish, the rate of adaptation to the bureaucracy is prolonged. Trying to find the provision to domestic demand in Turkey is taking time to find the right documents. For example, they are asking for documents, understanding what the documents are, and the availability of them is taking time for PCN. (...) Security, there is a difference, you're safe in Turkey, you know the rights here and can defend those rights more easily.
Cultural Difference PCN-2: How the person on the other side will speak; even if it is understood as a language; let's say English agreed, but maybe the man doesn't want a man to throw his legs crossed, or he doesn't want him to speak out loud. Contact with the HCN will not be comfortable. With the HCN, he may think that he/she will have problems in terms of language whether linguistically and communication. HCN-1: Can't able to communicate, can not communicate, cannot take an interpreter every time, because, at worst, the PCN English has to carry a very good junior engineer. Each time, because the technical issues must be a little to understand, the junior engineer will make the translation, otherwise, it is impossible to progress. HCN-3: Obviously, an extra effort is needed, if I am transmitting information to a Turkish employer, I can transmit in a shorter time. P-2: We cannot communicate with HCN on many issues, our values are different, our world view, our commercial view may be different. There's no point in pushing things. You prefer the people you trust, with your language, religion, faith, life. We prefer citizens of our country as managers.
  Parent Country National (PCN) Host Country National (HCN) Principal (P)
Cultural Differences PCN-3: Of course you always feel like you're under psychological pressure. And that's the thing that affects performance the most, because you're frustrated. You can't decide. Think about it, in a country where you don't know anything. HCN-4: I'm speaking generally here, but it is difficult that an American understand even speaking in Turkey. We talk such implicit expressions. Because he doesn't know the culture, sometimes he may not understand. P-3: We are racing fastly at there, we want to finish a job in a much shorter time there, the culture of them is slower than the Turks, they are slower. They can't comprehend why we're going so fast.
Bounded Rationality  PCN-2: If you say all the things you know, work never goes away. You need to bring the information from a filter, you want to make it softer. Wherever you go, a Turkish businessman thinks the same with all the conditions of Turkey. They think of the brand as it is known in Turkey.PCN-3: Sometimes you do little tricks here. Sometimes you don't say all these decisions to the headquarters. Here you can not reflect all the events to the center.PCN-5: The reason I was going there was that they couldn't understand the conditions there. They got a bid, they run their business over a branch in there, but the guy who is working there, doesn't pass on information, they can't make a decision, they're blind. Money needs to be paid, the branch says that it needs money, but they didn't know why that money is needed, They felt they had to pay because they wanted the business to keep going. HCN-2: Let me tell you more clearly, we are trying not to reflect them. We tell them there is a somehow been misunderstood, we tell them we will solve it with writing, but we solve it by talking to the customer somehow.HCN-3: I need extra effort. I'll be communicating in a shorter time if I am transmitting a Turkish employer. A little bit more phone calls and longer speeches are needed while talking to manager from foreign country, to eliminate misunderstandings. Because they do not recognize geography. The person who is the manager of the Turkish branch manager needs to know the cultural situation here. Because they really know that he can't understand here. P-2: "If you do not see or if you see risky you are protecting yourself as much as possible. The reports given by the people(agent) are very important. Including your own predictions in accordance with these reports, you enter into a decision process. Right or wrong results will be seen in the future, but we get in the opportunities which look good, I never know how will it have resulted. "P-3: (...) Whether bureaucratic obstacles, bureaucratic procedures, we know more about them with HCN, we can move faster. (...)We can decide faster in Turkey, we can respond faster. But organizing the team in the foreign country is hard. First of all, you have to make sure that the team knows the subject there. The difference is the uncertainties.
Control Control Method PCN-2: Every three months I was coming here and reporting, staying here for a week, reporting all the details about there and learning the latest developments about the company. Apart from this, about a 2-3 months period, either the general manager and boss or sometimes boss comes alone. Sometimes the manager of the export department stays there for a while. He does on-site inspections, sometimes a staff could be sent by the manager for dedicated duties such as a warehouse counting. So there was a continuous follow-up. HCN-1: We would have our monthly audits. Sometimes once a month, sometimes every three months. Sometimes small, sometimes big. We'd report a lawyer what we did. We would report on our occasional work. Together with their general definition, we did not engage in any bribery, and we signed online signatures that we read very well the ethical rules of the company.HCN-4: Reporting. Reporting is critical. Reporting at the right time. Written communication and also continuous phone calls. I was always on the phone. So communication-based. The man (Principal) comes once a month. Receives reports. He was doing evaluation meetings with us. We were reporting everything. P-1: When we supervise our other employees, we do the audits with our customers and the confidential customers we concur with.P-2: Computerized control mechanisms are used, each item is tried to be used as much as possible, otherwise, you cannot control it in this sense.P-3: Continuous analysis, continuous reporting period is 10-days, I visit there ten days a month. If there is a Turkish employee, you reduce your visits to ten days at two months. Your reports become more reliable if the employee is Turkish.
Hardness of Control PCN-3: You get a job there, for example. The headquarter cannot know, whatever you do. You buy, you sell something. The headquarter cannot understand. HCN-4: Country manager of a company. I won't give you his name. One day he came to me and he gave me advice. She says she bought a ticket for 200 euros, she asked for 1000 euros writing for the bill. She says let them pay. She says that "I'm buying a television for the office but I'm putting it to my house because they don't come and do not see". P-2: We are supervising, of course, supervising could be with our channel, by the staff there, it is also happening with external audit companies, we can not say that the supervision is 100% successful. We have lots of problems with supervising and control.
Parent Country National (PCN) Host Country National (HCN) Principal (P)
Trust and Socialization PCN-2: For example, when I went there, I had been working here for four years, so I was undergoing any kind of supervision, so there was trust. But from there, when you hire a Russian person, there is no trust.PCN-3: (If the employee is PCN) Easier control. So, in fact, the convenience of double-sided communication. Ease of communication with the boss, ease of communication with you. The boss thinks he can control you better. He thought he could lead you better. If he was a Turkmen, trust descends to zero. So first we need to establish trust again. First, it starts from scratch. Whatever happens, you always have a suspicious look at Turkmen. HCN-1: If I talk about the Swedes, as I said, the Swedes would be a bit rigid about the same subjects, but because they were like processed from the same lathe, it wouldn't have been a very different decision.HCN-4: Any mechanism except trust, does not work here. You can also supervise with trust.HCN-5: So, in fact, there is a control mechanism in the contract, or on paper. In real life, it goes with very mutual trust. P-2: You have to trust people, you'll try a little bit, then you'll trust. We may not be able to do many things together with HCN, we cannot communicate, our values are different, our view of the world is different, our commercial view is different. You prefer the people you trust with language, religion, belief, life.P-3: If I send an employee from here, he understands my goals better. He makes me spend less energy. I'm looking at the employee being trustworthy because it's a very remote area. Away from your control. You're waiting for the employee to defend your interests, defend your interests. When the employee is a foreigner, it takes time to understand and realize these expectations.
Uncertainity and Risk Perception PCN-3: As I said, you don't go with math. That's where you sum two with two and you can find many results. So two workers can bring two technical staff and knock over the mountains, on the contrary, you can sit idle for ten days. You can do twenty days of work in two days. PCN-5: It was hard to figure out how things work. I stayed there for a year and didn't understand how they worked. I tried not to leave his words to not make a mistake when we had a business partner there. I was planning activities, but I was trying to convince our business partners to start because I was afraid to do it alone, too risky, you don't know anything and you're afraid to make mistakes. HCN-1: Working with the North people, because of extreme rigidity I've had problems, flexibility zero, they do not accept. he says "I don't take this risk, you take". I had problems due to they do not take risks. That was the biggest problem.Researcher: A German, risk perception in Turkey, differ from your perception of risk, behavior outside the rules may be more risky for him. Therefore, can we say that giving up risky opportunities are quicker for him?HCN-3: Yes.. (Mirroring)HCN-4: Man does not get in risk easily. Why would he get in? But our Turkish structure is sometimes a huge advantage. Sometimes also disadvantage. Either the Turk is regularly attacking to the Roman army. Because it's irregular. Because Turk is going to die, so he takes a risk easily. Our Turks are not like them. P-3: And there's a lot of risk. Abroad, of course, the greater the risk, the greater the gain. Take Iraq as an example; your costs increase because of security risks. When the number of people who want to go to Iraq decreases, the costs are increasing.
Incentives and Contract Share/Bonus Applications PCN-1: Your requirement, when your need for that company is no longer a sine qua non, it is possible that the employee and the professional person can use it against the boss to make more money. When I know so much in that country, the boss wants you to be a partner with his own business so that I make the decisions in favor of both of us, I give a decision by myself, but I'm not working on my own behalf.PCN-3: It's your job to turn your relationship with the state level from one company to the next. This is in nature. So I told you?. Now that guy gets a good relationship, he brings good business to your company. If he brings good work he wants to get more money. If you satisfy his desires, this man will always work with you. HCN-2: Currently, such as Russia, Romania, Poland, and Turkey we have managers in the countries themselves. All of our friends are successful who have survived so far. There is a natural selection in the work. When you look at the macro, I gave the same money to all of them, they all tried similar things, they produced different results. Why and how he's trying to learn. He is also dismissing a man who has been insisting on producing bad results for a year. "HCN-3: In terms of my employer; Though if the employee was a German running in here, he would very likely work for them at a higher cost. He would have been more costly. Maybe they could give incentives for him to live in a more difficult country. I'm happy with my own situation. Thank God, I say every day. But I know that I've created a very little cost for them. P-1: We offer a partnership with our employees so that we share the risks and gains with them. P-2: you have to tie the employees (agents) with material terms. You can not do anything else, share can be given, or you can make a partnership contract with the employee... You need to satisfy him, you cannot let him leave you because when he left, you will be get in a bad situation. As he is a manager you need to give what he deserves, because of the dedication to have a commitment to you or get a commitment to your work.
Parent Country National (PCN) Host Country National (HCN) Principal (P)
Share/Bonus Applications P-3: "When the employee in the country is Turkish (PCN), you are showing a number of goals, you are saying a number of bonuses, so the employee becomes more motivated. You cannot show such a bonus and goal to the local employee (HCN). When he is Turkish, you are offering high earnings, you offer minimum three times more fees then here" because Iraq "There are a number of negativities related to security; if you offer him to go European country, the incentives for Europa are lower than Iraq."
Contracts   HCN-1: Together with the general definitions of our interim work we had signed online signatures that we read Sveko ethics very well and we did not interfere with any bribery. P-2: (…) we are doing a contract with our employees, but If you ask, is there logic for us? , I don't find it very logical, (...) we have a contract to do legal things, but I can't say we're very successful in contracting with employees.
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