MNC subsidiary size and expatriate control: Resource-dependence and learning perspectives |
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| Affiliation: | 1. Paul J. Hill School of Business, The University of Regina, Regina, Saskatchewan, Canada;2. Richard Ivey School of Business, The University of Western Ontario, London, Ontario, Canada;1. Dublin Institute of Technology, Room 2045.2, Aungier St, Dublin 2, Ireland;2. Dublin Institute of Technology, Room 4037, Aungier St, Dublin 2, Ireland;1. Business School, Sogang University, 35 Baekbeom-ro, Mapo-gu, Seoul, 04107, Republic of Korea;2. College of Business Administration, Pukyong National University, 45 Yongso-ro, Nam-gu, Busan, 48513, Republic of Korea;3. Business School, Hanyang University, 222 Wangsimni-ro, Seongdong-gu, Seoul, 04763, Republic of Korea;1. Faculty of Business, Bond University, Queensland 4229, Australia;2. Cox School of Business, Southern Methodist University, Dallas, TX 75275-0333, United States;1. Università Luiss Guido Carli, Department of Business and Management, viale Romania 32, 00197 Rome, Italy;2. Institute for International Business, WU Vienna University of Economics and Business, Welthandelsplatz 1, 1020 Vienna, Austria;3. LMU Munich, Ludwigstr. 28, 80539 Munich, Germany;4. Institute for International Business, WU Vienna University of Economics and Business, Welthandelsplatz 1, 1020 Vienna, Austria;5. Department of Strategy and Innovation, Copenhagen Business School, Frederiksberg, Denmark |
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| Abstract: | Based on resource-dependence theory, we hypothesize a U-shaped relationship between multinational corporations’ subsidiary size and expatriate staffing level. Drawing on both resource-dependence and learning perspectives, the U-shaped relationship is further hypothesized to be moderated by parent-firm size, the amount of equity ownership of the parent firm in the subsidiary, and subsidiary age. A sample of 11,754 Japanese overseas subsidiaries was used to test the hypotheses. Results supported all four hypotheses both cross-sectionally and longitudinally, and explained 24% of the variance in expatriate staffing level. The theoretical and practical implications of these findings are discussed. |
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