Expatriate utilization,subsidiary knowledge creation and performance: The moderating role of subsidiary strategic context |
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Authors: | Norifumi Kawai Chul Chung |
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Institution: | 1. University of Sussex Business School, Falmer, Brighton, BN1 9SL, United Kingdom;2. Henley Business School, University of Reading, Whiteknights, Reading, RG6 6UD, United Kingdom |
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Abstract: | Little research examines the mechanisms for the relationship between expatriate utilization and subsidiary performance. Building on the knowledge-based view of the firm, we propose a multi-stage mediation model to explain how expatriate staffing promotes subsidiary financial performance. Our results underscore that expatriate utilization has an indirect, mediated effect on subsidiary financial performance through its links with subsidiaries’ knowledge creation and product performance. Adopting a moderated mediation approach, we also find that the indirect relationship between expatriate utilization and subsidiary product performance via subsidiary knowledge creation is strengthened by the context of transnational strategy as a moderating contingency. |
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Keywords: | Expatriation Knowledge creation capability Subsidiary performance Transnational strategy Japanese MNCs |
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