Kenneth S Law (Department of Management, The Chinese University of Hong Kong, Shatin, NT, Hong Kong) Lynda Jiwen Song (Business School, Renmin University of China, Beijing, PR China) Chi-Sum Wong (Department of Management, The Chinese University of Hong Kong, Shatin, NT, Hong Kong) Donghua Chen (Institute of Accounting and Finance, School of Business, Nanjing University, Nanjing, PR China)
Abstract
Localization in the corporate setting is the extent to which expatriate managers are replaced by local employees originally held by expatriate managers. We sampled 229 multinational enterprises (MNEs) in the People's Republic of China and investigated the antecedents of localization success based on resource dependency theory. We developed a 40-item scale to measure human resource (HR) practices determined to contribute to successful localization. We also identified parent company support and top management's commitment as two sets of factors that predicted localization success. It was the first study that found a significant relationship between localization success and top management ratings of company performance.
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Volume (Year): 40 (2009) Issue (Month): 8 (October) Pages: 1359-1373 Download reference. The following formats are available: HTML
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