Impact of nationality composition in foreign subsidiary on its performance: a case of Korean companies

Hyun, Hea-Jung; Oh, Chang Hoon; Paik, Yongsun

doi:10.1080/09585192.2014.949819

Cited by 38 publications

(64 citation statements)

References 80 publications

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“…Empirical studies of the relationship between subsidiary staffing options based on nationality categories and subsidiary performance have shown, not surprisingly, mixed results. Some studies found a positive impact of assigning PCNs on subsidiary performance (Gong, 2003a;Hyun et al, 2014), while others showed a negative impact of using PCNs instead of HCNs on subsidiary performance (e.g. Fang et al, 2010;Gaur et al 2007) or no significant impact (e.g.…”

Section: Studies Of Subsidiary Staffing In Mnesmentioning

confidence: 99%

Beyond nationality

Kim

Chung

Brewster

2019

JGM

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Purpose The literature on international staffing in multinational enterprises (MNEs) often focuses on staffing choices based on nationality categories (e.g. parent-country nationals, host-country nationals, third-country nationals) for key positions in subsidiaries when examining their impacts on subsidiary outcomes. Considering both nationality and international experience, the purpose of this paper is to suggest an integrative typology to identify and classify various types of traditional and alternative subsidiary staffing options and evaluate them in relation to social capital and knowledge flows across MNE organizations. Design/methodology/approach Based on a social capital view of MNEs, the authors propose a typology of subsidiary staffing options founded on the dimensions of nationality and the location of prior international experience of incumbents of key positions. Then traditional as well as alternative staffing options from the literature are identified and evaluated corresponding to each type of staffing option in the framework. Findings The typology identifies nine types of subsidiary staffing options. It includes and classifies the traditional and alternative staffing options, while highlighting types which need further research. The study also suggests impacts of the traditional and alternative staffing type on social capital and knowledge flows in MNEs. Originality/value The new typology identifies various types of subsidiary staffing options comprehensively and evaluates them systematically. HRM specialists can classify subsidiary managers based on the typology and examine which staffing option would be desirable given a specific subsidiary context. The research also provides novel insights on what needs to be considered to select and develop subsidiary managers who can build internal and external social capital in MNEs.

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Section: Studies Of Subsidiary Staffing In Mnesmentioning

confidence: 99%

Beyond nationality

Kim

Chung

Brewster

2019

JGM

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“…As a part of a responsiveness approach, locally hired managers contribute to designing locally adapted solutions, in the spirit of autonomy awarded to the subsidiary (Reiche, 2007). Locally hired managers can therefore deal with local idiosyncrasies more efficiently (Harzing, 2001;Kobrin, 1988) and they can 'recontextualize' the corporate values or existing corporate practices, redefining their focus to make them suitable to their localities (Gertsen & Zølner, 2012;Hyun et al, 2015). Furthermore, local managers are embedded in local business networks; they have accumulated local social capital and can use it for the purpose of the MNE's business (Hutchings, 2005).…”

Section: Relevance Of Local Hires In Helping Gi and Lr Deal With Turbmentioning

confidence: 99%

“…To date, studies have not analyzed staffing decisions in conjunction with the strategic choices relating to GI and LR in the context of emerging economies. While it has been implicitly assumed that using expatriates is consistent with GI and using locally hired managers is consistent with LR (Hyun, Oh, & Paik, 2015;Tan & Mahoney, 2006), to date, no study has actually investigated these choices from the perspective of subsidiary performance amidst turbulence in an emerging economy. Given that scholars have argued the relationship between subsidiary staffing and performance should include both subsidiary context and subsidiary strategy (Colakoglu et al, 2009), we believe our study is timely.…”

Section: Introductionmentioning

confidence: 99%

Integration-responsiveness, local hires and subsidiary performance amidst turbulence: Insights from a survey of Chinese subsidiaries

Williams

Colovic

Zhu

2017

Journal of World Business

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We study MNE subsidiary performance in a turbulent, emerging economy, focusing on how locally hired managers and integrationresponsiveness (I-R) influence performance outcomes. We augment I-R by considering how locally hired managers support or hinder global integration (GI) and local responsiveness (LR) in China. Analysis of data from 104 Chinese subsidiaries suggests higher proportions of locally hired managers do not support GI; GI is sufficient in its own right in dealing with turbulence, positively moderating the relationship between turbulence and performance. However, a higher proportion of locally hired managers does improve subsidiary performance amidst turbulence when accompanied by LR.

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“…It is indicated that this diversity have a positive effect on the performance (Larson, 2007;Mitchell, Nicholas, & Boyle, 2009;Tyran & Gibson, 2008). Because of the fact that there are differences among employees from different nationalities in terms of worldview, behavior patterns, values, and norms, the majority of the employees of different nationalities refers to deep-level heterogeneity as cultural diversity (Hambrick, Davison, Snell, & Snow, 1998;Jackson et al, 1995). In line with the paradigm of diversity, it is stated that group members of different nationalities have a positive effect on group performance (Ely & Thomas, 2001;Hambrick et al, 1998;Maznevski, 1994;Oosterhof et al, 2009).…”

Section: Cultural Diversity-performance Relationshipmentioning

confidence: 99%

“…Because of the fact that there are differences among employees from different nationalities in terms of worldview, behavior patterns, values, and norms, the majority of the employees of different nationalities refers to deep-level heterogeneity as cultural diversity (Hambrick, Davison, Snell, & Snow, 1998;Jackson et al, 1995). In line with the paradigm of diversity, it is stated that group members of different nationalities have a positive effect on group performance (Ely & Thomas, 2001;Hambrick et al, 1998;Maznevski, 1994;Oosterhof et al, 2009). Furthermore considering the internationalisation of today's universities, group members with different national backgrounds will be benefical for group performance.…”

Section: Cultural Diversity-performance Relationshipmentioning

confidence: 99%

The Impact of Cultural Diversity on the Academic Performance: A Study on Turkish Universities

Turgut¹

2016

IBR

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Universities as science production centers are institutions that bring diverse information together. It is noteworthy that no longer these institutions have more international and heterogeneous structures. Qualified foreign academicians with the educational culture of a different country get universities stronger with these differences and knowledge, and improve the universities' academic performance. Considering this idea in this research the effect of the number of foreign academicians to the academic performance of universities is investigated. For this purpose, the effect and correlation between performance rates of 130 universities of Turkey and the number of the foreign academicians, which is evaluated by University Ranking by Academic Performance Research Laboratory (URAP), have been revealed with correlation and regression analysis. As a consequence, a positive and weak relationship was determined between the number of foreign academicians and performance. Also the number of the foreign instructors affects the performance of the universities positively.

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Impact of nationality composition in foreign subsidiary on its performance: a case of Korean companies

Cited by 38 publications

References 80 publications

Beyond nationality

Beyond nationality

Integration-responsiveness, local hires and subsidiary performance amidst turbulence: Insights from a survey of Chinese subsidiaries

The Impact of Cultural Diversity on the Academic Performance: A Study on Turkish Universities

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