Expatriate Deployment Levels and Subsidiary Growth: A Temporal Analysis

Journal of World Business, Forthcoming

48 Pages Posted: 5 Mar 2013

See all articles by Suhaib Riaz

Suhaib Riaz

University of Massachusetts Boston - College of Management

W. Glenn Rowe

University of Western Ontario - Richard Ivey School of Business

Paul W. Beamish

University of Western Ontario - Asian Management Institute

Date Written: 2014

Abstract

We investigate the relationship between expatriate-deployment levels and the growth of international subsidiaries over time. Latent-curve analysis reveals that higher subsidiary growth over the long term is 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. Theoretically, our results point to two factors that impact subsidiary changes over time: path dependence and dynamic adjustment costs.

Keywords: path dependence, dynamic adjustment costs, expatriate, subsidiary growth, latent-curve model

JEL Classification: M12, M5

Suggested Citation

Riaz, Suhaib and Rowe, W. Glenn and Beamish, Paul W., Expatriate Deployment Levels and Subsidiary Growth: A Temporal Analysis (2014). Journal of World Business, Forthcoming. Available at SSRN: https://ssrn.com/abstract=2228460

Suhaib Riaz (Contact Author)

University of Massachusetts Boston - College of Management ( email )

Boston, MA
United States

W. Glenn Rowe

University of Western Ontario - Richard Ivey School of Business ( email )

1151 Richmond Street North
London, Ontario N6A 3K7
Canada

Paul W. Beamish

University of Western Ontario - Asian Management Institute ( email )

Richard Ivey School of Business
London, Ontario N6A 3K7
Canada
519-661-3237 (Phone)
519-661-3700 (Fax)

Register to save articles to
your library

Register

Paper statistics

Downloads
41
Abstract Views
603
PlumX Metrics