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- Title
Institutional distance, host country and international business experience, and the use of parent country nationals.
- Authors
Ando, Naoki; Paik, Yongsun
- Abstract
This study examines how the institutional distance between a host country and a home country influences foreign subsidiary staffing, and how overseas business experience moderates the effect of institutional distance. Hypotheses regarding the effect of institutional distance on foreign subsidiary staffing are empirically tested using a sample of 2,980 foreign subsidiaries of Japanese firms. This study shows that although the ratio of parent country nationals to subsidiary employees decreases when firms face greater institutional distance, the absolute number of parent country nationals assigned to the subsidiary increases. This study also shows that firms with more overseas business experience replace host country nationals with parent country nationals when there is greater institutional distance.
- Subjects
INTERNATIONAL business enterprise management; SUBSIDIARY corporations; PERSONNEL management; EMPLOYMENT; FOREIGN subsidiaries; FOREIGN corporations; MANAGEMENT
- Publication
Human Resource Management Journal, 2013, Vol 23, Issue 1, p52
- ISSN
0954-5395
- Publication type
Article
- DOI
10.1111/j.1748-8583.2012.00201.x