Author(s) :

Prof. V. Renga Boss.

Volume/Issue :

Abstract :

In the aftermath of the 2007–2009 global financial crisis, corporations worldwide including those based in India shifted their focus primarily towards survival and risk mitigation. As economic stability gradually returned, attention realigned with the effective management of subsidiaries, particularly in the case of Indian multinational corporations (MNCs) operating in diverse international markets. Traditionally, controlling practices in India have been influenced by global frameworks, including the widely discussed “German model of controlling,” often described as the “management of management.” This model, occasionally likened to the human immune system in academic discourse, tends to emphasize risk detection and response. However, such an analogy narrows the scope of controlling by overlooking the proactive and strategic dimensions, particularly in opportunity management. This paper seeks to broaden the conceptual understanding of controlling by drawing an analogy with the human nervous system rather than the immune system. Employing methods of analysis and synthesis within the frameworks of Grounded Theory and the Evolutionary Theory of Multinational Corporations, this study aims to extend the traditional concept of controlling to incorporate functions such as reverse knowledge transfer, agility in decision-making, and the development of dynamic performance metrics. The key contribution of this study lies in identifying the existing gaps in conventional controlling systems and proposing an evolved framework more suited to the complexities faced by Indian MNCs in a globalized environment. This includes indirect metrics for assessing controlling effectiveness, thereby offering a forward-looking approach to management science. Keywords: controlling concept, effectiveness of controlling, Indian Multinational Corporations (MNCs), reverse knowledge transfer, management innovation

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