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The Change of Nationality in Top Executives of Foreign Affiliates: A Study of North American, European and Asian MNCs in Japan

Author

Listed:
  • Tomoki Sekiguchi

    () (Graduate School of Economics, Osaka University)

  • Sachiko Yamao

    (Department of Management and Marketing, University of Melbourne)

Abstract

Using archival data published in 2003 and 2007, we investigated factors that influence the change of nationality of the most senior executives in foreign affiliates of MNCs operating in Japan. Our results show that as the length of operation in Japan increases, the likelihood of a non-Japanese top executive in the affiliate being replaced by a Japanese top executive, was higher than that of a Japanese top executive being replaced by a non-Japanese top executive. We also found that when an affiliate had a Japanese top executive at time one, it was more likely that a non-Japanese executive replaced the person if the affiliate fs foreign ownership ratio increased at time two. In addition, there were notable differences between affiliates of Asian, North American and European MNCs in top executive staffing patterns of Japanese affiliates. Implications from this study and future research directions are discussed herein.

Suggested Citation

  • Tomoki Sekiguchi & Sachiko Yamao, 2010. "The Change of Nationality in Top Executives of Foreign Affiliates: A Study of North American, European and Asian MNCs in Japan," Discussion Papers in Economics and Business 10-11, Osaka University, Graduate School of Economics and Osaka School of International Public Policy (OSIPP).
  • Handle: RePEc:osk:wpaper:1011
    as

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    More about this item

    Keywords

    MNC; foreign affiliate; top executive; Japan;

    JEL classification:

    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • M12 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Personnel Management; Executives; Executive Compensation
    • M16 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - International Business Administration

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