Subsidiary Staffing in Multinational Enterprises: Agency, Resources, and Performance

Hong Kong University of Science & Technology Business School Research Paper Series, Forthcoming

Academy of Management Journal, Vol. 46, No. 6, pp. 728-739, 2003

13 Pages Posted: 6 Aug 2007

See all articles by Yaping Gong

Yaping Gong

Hong Kong University of Science & Technology (HKUST)

Abstract

How likely are multinational enterprises (MNEs) to use expatriate parent country nationals to staff culturally distant subsidiaries? How does their employment affect subsidiary performance? The agency theory prediction is that MNEs will rely more heavily on parent country nationals as cultural distance increases and that this reliance will weaken over time. Both agency theory and the "resource-based view" suggest tha a positive effect of expatriate staffing on subsidiary performance increases with cultural distance but decreases over time. Results largely supported the predictions in data on Japanese foreign subsidiaries.

Suggested Citation

Gong, Yaping, Subsidiary Staffing in Multinational Enterprises: Agency, Resources, and Performance. Hong Kong University of Science & Technology Business School Research Paper Series, Forthcoming; Academy of Management Journal, Vol. 46, No. 6, pp. 728-739, 2003. Available at SSRN: https://ssrn.com/abstract=1004667

Yaping Gong (Contact Author)

Hong Kong University of Science & Technology (HKUST) ( email )

Clearwater Bay
Kowloon, 999999
Hong Kong

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