“Deprivation of Control” and an Evolution of the Institution of Expatriates: A Case Study of Changing HQ Controls Over Subsidiaries in a Norwegian MNC Internationalization Process

This paper explores the evolution of management control systems in a multinational corporation (MNC) during different phases of internationalization. Focusing on top managers’ perceptions at the headquarters (HQ), the study investigates how a “deprivation of control” drives changes in expatriate control mechanisms. Departing from traditional perspectives, the role of the research highlights the individual agency in shaping institutional change. Using a Norwegian MNC as a case study, the paper traces the company’s internationalization journey and reveals significant transformations in expatriate control mechanisms. A key finding is the emergence of “deprivation of control,” a shared mental state among top managers that influences the strategic tuning of expatriate roles to address specific challenges during internationalization. The study contributes by integrating psychological research to understand changes in management control. It emphasizes the dynamic evolution of expatriate roles, challenging the notion of achieving total control and influence over subsidiaries. The findings suggest a nuanced approach to designing control tools during internationalization.