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Expatriate-deployment levels and subsidiary growth: A temporal analysis

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  • Riaz, Suhaib
  • Glenn Rowe, W.
  • Beamish, Paul W.

Abstract

We investigated the relationship between expatriate-deployment levels and the growth of international subsidiaries over time. Latent-curve analysis revealed that higher subsidiary growth over the long term was achieved through both (a) a higher proportion of expatriates at subsidiary founding and (b) a slower reduction in the proportion of expatriates over time. These results suggest that the decision to reduce the proportion of expatriates due to cost considerations should be tempered with the potential long-term benefits of expatriates for improving subsidiary growth. Our results point to the importance of two factors that impact subsidiary changes over time: path dependence and dynamic adjustment costs.

Suggested Citation

  • Riaz, Suhaib & Glenn Rowe, W. & Beamish, Paul W., 2014. "Expatriate-deployment levels and subsidiary growth: A temporal analysis," Journal of World Business, Elsevier, vol. 49(1), pages 1-11.
    • Handle: RePEc:eee:worbus:v:49:y:2014:i:1:p:1-11
    DOI: 10.1016/j.jwb.2013.04.001
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    4. Moreira, Márcia Zabdiele & Ogasavara, Mário Henrique, 2018. "Formal and informal institutions and the expatriation assignment: The case of Japanese subsidiaries in Latin America," Japan and the World Economy, Elsevier, vol. 47(C), pages 18-26.
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