This study investigates how foreign direct investment (FDI) motivations and technological resource commitment affect headquarters' use of process control over subsidiaries. Using data from 1015 Taiwanese manufacturing firms investing in China in 2003, the study finds that headquarters use process control more when the primary FDI motivation is resource-seeking but less when it's market-seeking. The relationship between process control and FDI motivation is further moderated by technological resource commitment from the headquarters, subsidiary, and partners. The findings offer guidelines for Taiwanese multinational corporations (MNCs) in choosing control mechanisms.
