Title: HOST COUNTRY DEVELOPMENT LEVEL AND EXPATRIATE STAFFING
Abstract: This study examines how the level of host country’s development relative to home country affects the extent to which MNEs staff their overseas subsidiaries with home country expatriates. Building on the research on intergroup relations from social psychology, we hypothesize that the extent of expatriate staffing in a subsidiary is positively related to the host country’s relative level of development. We further predict that such relationship would tend to be stronger for subsidiaries that are older in terms of the length of operation in a host country, and weaker for subsidiaries that are larger in size and better endowed with firm-specific assets. The findings from the analysis of expatriate staffing in 1,422 overseas subsidiaries of 774 Korean firms operating in 67 host countries provide support for the hypotheses.
Publication Year: 2011
Publication Date: 2011-08-01
Language: en
Type: article
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