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Parent country nationals or local nationals for executive positions in foreign affiliates: An empirical study of Japanese affiliates in Korea |
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| Authors: | Naoki Ando Dong Kee Rhee Namgyoo Kenny Park | ||
| Affiliation: | (1) Department of Distributive Science and Business Administration, Nagasaki Prefectural University, 123 Kawashimo-cho, Sasebo-shi, Nagasaki 858-8580, Japan;(2) Department of Strategy and International Business, College of Business Administration, Seoul National University, Rm 309 SK-Hall, San 56-1 Shillim-dong, Gwanak-gu, 151-916 Seoul, South Korea;(3) Graduate School of Business, Seoul National University, Rm 308 SK-Hall, San 56-1 Shillim-dong, Gwanak-gu, 151-916 Seoul, South Korea | ||
| Abstract: | This study examines how the host country experience of Japanese multinational corporations (MNCs) affects their staffing policies for executive manager positions at foreign affiliates. Hypotheses on executive staffing policies for foreign affiliates are tested using survey data collected from 103 Japanese affiliates in Korea. Findings show that the level of global integration and the degree of centralization of decision-making positively affect an assignment of parent country nationals as executive managers of foreign affiliates. We further find that foreign affiliates’ experience in a host country moderates the effects of both global integration and centralization on staffing decisions for the affiliates.
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| Keywords: | Staffing policies for foreign affiliates Global integration Centralization of decision-making Host country experience Japanese MNCs | ||
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