Institutional Environments, Staffing Strategies, and Subsidiary Performance

The authors adopt and develop an institutional perspective to advance understanding of how host country environments influence subsidiary staffing strategies. They propose and find that (a) firms rely more on expatriates in institutionally distant environments for reasons related to the efficient tr...

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Bibliographic Details
Published in:Journal of management 2007-08, Vol.33 (4), p.611-636
Main Authors: Gaur, Ajai S., Delios, Andrew, Singh, Kulwant
Format: Article
Language:English
Subjects:
Employment
Expatriates
Foreign enterprises
Foreign subsidiaries
Human resources
Institutionalism
Japan
Management science
Personnel management
Staff
Staffing
Subsidiary
Workforce planning
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Summary:The authors adopt and develop an institutional perspective to advance understanding of how host country environments influence subsidiary staffing strategies. They propose and find that (a) firms rely more on expatriates in institutionally distant environments for reasons related to the efficient transfer of management practices and firm-specific capabilities and (b) the positive influence of expatriate staffing levels on subsidiary performance is dependent on the institutional distance between the host and home country, and subsidiary experience. The authors' findings are based on their analysis of expatriate employment levels and performance in 12,997 foreign subsidiaries of 2,952 Japanese firms in 48 countries.
ISSN:0149-2063
1557-1211
DOI:10.1177/0149206307302551