IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Login to save this paper or follow this series

Staffing foreign subsidiaries with parent country nationals or host country nationals? Insights from European subsidiaries

  • Dörrenbächer, Christoph
  • Gammelgaard, Jens
  • McDonald, Frank
  • Stephan, Andreas
  • Tüselmann, Heinz

This paper investigates the relationship between the use of parent company nationals (PCN) and home country nationals (HCN) and various attributes in foreign owned subsidiaries in Denmark, Germany and the UK. The study explores whether the existing literature on international staffing adequately captures the effects of PCN verses HCN managers on key characteristics of subsidiaries. The results of the study indicate that the PCN/HCN dichotomy widely used in the international staffing literature needs to take account of the following issues: First: The study confirms theoretical assumptions based on social capital theory that subsidiaries led by HCNs are more embedded in the host country's external environment (by having more frequent relationships with host country customers, suppliers and competitors). However, the study reveals that the assumed advantages PCN led subsidiaries have with headquarters do not extend to their relationships with competitors in other parts of the MNC. Second: HCN led subsidiaries are more autonomous than PCN led subsidiaries with regard to operational and strategic decisions that relate to the market issues (market areas supplied, product range) and with respect to the local institutional environment (HRM). Our study finds that this is also the case with regard to strategic decisions on financial control as well as on R&D and new product development. Third: On average, HCN led subsidiaries perform significantly better than PCN led subsidiaries with regard to sales growth by value, productivity and innovation. This is in line with the findings of Beechler et al. (2005), the only other study investigating European subsidiaries. It also confirms the study of Konopaske et al. (2002). However, it contradicts the findings of Segiguchi et al. (2011) and Bebenroth and Li (2010) on the same matter.

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: http://econstor.eu/bitstream/10419/83652/1/768045681.pdf
Download Restriction: no

Paper provided by Institute of Management Berlin (IMB), Berlin School of Economics and Law in its series Working Papers with number 74.

as
in new window

Length:
Date of creation: 2013
Date of revision:
Handle: RePEc:zbw:imbwps:74
Contact details of provider: Web page: http://www.mba-berlin.de/index.php?id=10&L=1

More information through EDIRC

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

as in new window
  1. Gammelgaard, Jens & McDonald, Frank & Stephan, Andreas & Tüselmann, Heinz & Dörrenbächer, Christoph, 2012. "The impact of increases in subsidiary autonomy and network relationships on performance," International Business Review, Elsevier, vol. 21(6), pages 1158-1172.
  2. Moshe Banai & William D Reisel, 1993. "Expatriate Managers′ Loyalty to the MNC: Myth or Reality? An Exploratory Study," Journal of International Business Studies, Palgrave Macmillan, vol. 24(2), pages 233-248, June.
  3. Danny Miller & Jangwoo Lee & Sooduck Chang & Isabelle Le Breton-Miller, 2009. "Filling the institutional void: The social behavior and performance of family vs non-family technology firms in emerging markets," Journal of International Business Studies, Palgrave Macmillan, vol. 40(5), pages 802-817, June.
  4. Birkinshaw, Julian & Hood, Neil & Young, Stephen, 2005. "Subsidiary entrepreneurship, internal and external competitive forces, and subsidiary performance," International Business Review, Elsevier, vol. 14(2), pages 227-248, April.
  5. Yadong Luo, 2007. "An integrated anti-opportunism system in international exchange," Journal of International Business Studies, Palgrave Macmillan, vol. 38(6), pages 855-877, November.
  6. Paul Marginson & Paul Edwards & Tony Edwards & Anthony Ferner & Olga Tregaskis, 2010. "Employee Representation and Consultative Voice in Multinational Companies Operating in Britain," British Journal of Industrial Relations, London School of Economics, vol. 48(1), pages 151-180, 03.
  7. Sunil Venaik & David F Midgley & Timothy M Devinney, 2005. "Dual paths to performance: the impact of global pressures on MNC subsidiary conduct and performance," Journal of International Business Studies, Palgrave Macmillan, vol. 36(6), pages 655-675, November.
  8. Konopaske, Robert & Werner, Steve & Neupert, Kent E., 2002. "Entry mode strategy and performance: the role of FDI staffing," Journal of Business Research, Elsevier, vol. 55(9), pages 759-770, September.
  9. Rosalie L Tung & Arjen van Witteloostuijn, 2008. "From the Editors: what makes a study sufficiently international?," Journal of International Business Studies, Palgrave Macmillan, vol. 39(2), pages 180-183, March.
  10. Dörrenbächer, Christoph & Geppert, Mike, 2009. "A micro-political perspective on subsidiary initiative-taking: Evidence from German-owned subsidiaries in France," European Management Journal, Elsevier, vol. 27(2), pages 100-112, April.
  11. David E. Guest & Jonathan Michie & Neil Conway & Maura Sheehan, 2003. "Human Resource Management and Corporate Performance in the UK," British Journal of Industrial Relations, London School of Economics, vol. 41(2), pages 291-314, 06.
  12. Edmund R Thompson, 2003. "A grounded approach to identifying national competitive advantage: a preliminary exploration," Environment and Planning A, Pion Ltd, London, vol. 35(4), pages 631-657, April.
  13. Ron Edwards & Adlina Ahmad & Simon Moss, 2002. "Subsidiary Autonomy: The Case of Multinational Subsidiaries in Malaysia," Journal of International Business Studies, Palgrave Macmillan, vol. 33(1), pages 183-191, March.
  14. Paul D Ellis, 2007. "Distance, dependence and diversity of markets: effects on market orientation," Journal of International Business Studies, Palgrave Macmillan, vol. 38(3), pages 374-386, May.
  15. Giroud, Axèle & Scott-Kennel, Joanna, 2009. "MNE linkages in international business: A framework for analysis," International Business Review, Elsevier, vol. 18(6), pages 555-566, December.
  16. Harzing, Anne-Wil, 1997. "Response rates in international mail surveys: Results of a 22-country study," International Business Review, Elsevier, vol. 6(6), pages 641-665, December.
  17. Schwens, Christian & Kabst, Ruediger, 2009. "How early opposed to late internationalizers learn: Experience of others and paradigms of interpretation," International Business Review, Elsevier, vol. 18(5), pages 509-522, October.
  18. Phillip M Rosenzweig & Nitin Nohria, 1994. "Influences on Human Resource Management Practices in Multinational Corporations," Journal of International Business Studies, Palgrave Macmillan, vol. 25(2), pages 229-251, June.
  19. R�gis Coeurderoy & Gordon Murray, 2008. "Regulatory environments and the location decision: evidence from the early foreign market entries of new-technology-based firms," Journal of International Business Studies, Palgrave Macmillan, vol. 39(4), pages 670-687, June.
  20. Demirbag, Mehmet & Tatoglu, Ekrem & Glaister, Keith W., 2007. "Factors influencing perceptions of performance: The case of western FDI in an emerging market," International Business Review, Elsevier, vol. 16(3), pages 310-336, June.
  21. Sea-Jin Chang & Arjen van Witteloostuijn & Lorraine Eden, 2010. "From the Editors: Common method variance in international business research," Journal of International Business Studies, Palgrave Macmillan, vol. 41(2), pages 178-184, February.
  22. Niels Noorderhaven & Anne-Wil Harzing, 2009. "Knowledge-sharing and social interaction within MNEs," Journal of International Business Studies, Palgrave Macmillan, vol. 40(5), pages 719-741, June.
Full references (including those not matched with items on IDEAS)

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:zbw:imbwps:74. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (ZBW - German National Library of Economics)

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.