Conflict in foreign subsidiaries of Japanese and western multinational corporations: The impact of cultural distance and differences in home-host country combinations

2011 ◽  
Vol 81 (S3) ◽  
pp. 49-71
Author(s):  
Markus Pudelko ◽  
Helene Tenzer
Keyword(s):  
Multinational Corporations ◽  
Host Country ◽  
Cultural Distance ◽  
Foreign Subsidiaries ◽  
The Impact

scholarly journals Determinants of Staff Localization in Headquarters-Subsidiary-Subsidiary Relationships

2021 ◽  
Vol 14 (1) ◽  
pp. 249
Author(s):  
Chan Bok Kim ◽  
Seong-Jin Choi ◽  
Luyao Zhang
Keyword(s):  
Multinational Corporations ◽  
Host Country ◽  
Cultural Distance ◽  
Foreign Subsidiary ◽  
Host Countries ◽  
Local Competition ◽  
Theoretical Contribution ◽  
Local Experience ◽  
Relationship Structure ◽  
The Impact

This paper investigates how cultural distance, the local experience of a foreign subsidiary, and the intensity of local competition jointly affect the staff localization of MNEs’ subsidiaries. While previous studies on the effects of cultural distance have mainly focused on the gap between home and host countries, we extend the existing “home-host” country perspective to the home-intermediary-host country relationship. This study regards Korea as an intermediary country and utilizes 520 observations from a unique survey conducted by the Export-Import Bank of Korea from 2006 to 2013. The results suggest that the impact of cultural distance on staff localization is a function of local experience and competitive environment in the home-intermediate-host relationship structure. This paper makes a theoretical contribution to our understanding of the behavior of multinational corporations by expanding the cultural distance perspective between the home and host countries explored in previous research to the home-subsidiary-subsidiary structure.

scholarly journals Career Development Support, Job Adaptation, and Withdrawal Intention of Expatriates: A Multilevel Analysis of Environmental Factors

2019 ◽  
Vol 16 (20) ◽  
pp. 3880
Author(s):  
Hemin Song ◽  
Shuai Zhao ◽  
Wenwen Zhao ◽  
Hua Han
Keyword(s):  
Career Development ◽  
Environmental Factors ◽  
Multilevel Analysis ◽  
Multinational Corporations ◽  
Host Country ◽  
Reference Value ◽  
Analysis Model ◽  
Development Support ◽  
The Impact ◽  
Moderating Role

The present study aims to explore the impact of career development support on job adaptation and withdrawal intention, and the multilevel moderating role of host country environmental factors. Through the questionnaire survey, we collected 242 expatriates’ data of 25 countries from China’s multinational corporations. Based on the constructed multilevel analysis model, we find: (1) career development support has a significant impact on job adaptation and withdrawal intention of expatriates; (2) job adaptation plays a mediating role between career development support and withdrawal intention; and (3) host country environment plays the multilevel moderating role between career development support and job adaptation. Through the multilevel model of host country environment, this study explores the mechanism of how career development support affects job adaptation and withdrawal intention. The conclusions enhance the understanding of the adaptation of expatriates and have important theoretical and practical reference value to achieve successful expatriate in the context of host country environment.

The impact of “distance” on multinational enterprise subsidiary capabilities

2016 ◽  
Vol 24 (2) ◽  
pp. 168-190 ◽  
Author(s):  
Alain Verbeke ◽  
Wenlong Yuan
Keyword(s):  
Value Chain ◽  
Design Methodology ◽  
Cultural Distance ◽  
Geographic Distance ◽  
Multinational Enterprise ◽  
Foreign Subsidiaries ◽  
Content Type ◽  
Special Cases ◽  
Mne Subsidiary ◽  
The Impact

Purpose The aim of this paper is to investigate how multinational enterprise (MNE) subsidiary capabilities are influenced by the firm-specific advantages (FSAs) of the parent company, as well as by cultural and geographic distance between the home and host country. Design/methodology/approach This paper assesses how the effects of the parent FSAs, cultural distance and geographic distance on subsidiary capabilities vary for different value-chain activities, with an empirical application to 60 foreign subsidiaries operating in Canada. Findings This paper uncovers distinct, three-way interaction effects among parent-level FSAs, cultural distance and geographic distance for upstream versus downstream activities in the value chain. Originality/value We find that in special cases, high levels of distance can be positive for MNEs, in terms of driving the creation of stronger subsidiary capabilities.

scholarly journals The Impact of Corruption Distance on Ownership Strategies of Spanish and Portuguese MNEs

2018 ◽  
Vol 17 (1) ◽  
pp. 15-30
Author(s):  
Mariana Pedrosa Faria ◽  
Fernando Carvalho ◽  
Nuno Rosa Reis
Keyword(s):  
Host Country ◽  
Multinational Enterprises ◽  
Home Country ◽  
Foreign Subsidiaries ◽  
Ownership Strategy ◽  
Important Decision ◽  
The Absolute ◽  
Using Data ◽  
The Impact

The ownership strategy of foreign subsidiaries is an important decision for multinational enterprises (MNEs). Previous research has analyzed the effect of country dimensions on this strategy, both from the home and the host country. In this paper we delve into the effect of differences between home and host country on the MNEs’ ownership strategies. Empirically, we analyze the influence of corruption distance on the ownership strategies of Spanish and Portuguese MNEs, using data from 3,941 foreign subsidiaries. We found that the higher the absolute corruption distance between Spain (or Portugal) and the host country, the higher the ownership controlled by MNEs. However, when the host is more corrupt than the home country, MNEs have a lower ownership level in the local subsidiaries.  

scholarly journals Influence of Exchange Rate Fluctuations and Credit Supply on Dividend Repatriation Policy of U.S. Multinational Corporations

2020 ◽  
Vol 9 (s1) ◽  
pp. 267-290 ◽  
Author(s):  
Muhammad Tahir ◽  
Haslindar Ibrahim ◽  
Abdul Hadi Zulkafli ◽  
Muhammad Mushtaq
Keyword(s):  
Exchange Rate ◽  
Multinational Corporations ◽  
Host Country ◽  
Method Of Moments ◽  
Foreign Subsidiaries ◽  
Credit Supply ◽  
Exchange Rate Fluctuations ◽  
Private Credit ◽  
The Difference ◽  
Generalised Method Of Moments

AbstractThis study aims to examine the effect of exchange rate fluctuations and credit supply on the dividend repatriation policy of foreign subsidiaries of U.S. multinational corporations (MNCs) around the world. The difference generalised method of moments (GMM) estimator was applied to estimate the dynamic dividend repatriation model. The results suggest that the appreciation of host-country currency against the USD leads to higher dividend repatriation by the foreign subsidiaries of U.S. MNCs. Moreover, results reveal that higher availability of private credit in the host country results in lower dividend repatriation by the U.S. MNCs’ foreign subsidiaries.

Examining Investor Expectations Concerning Tax Savings on the Repatriations of Foreign Earnings under the American Jobs Creation Act of 2004

2007 ◽  
Vol 29 (2) ◽  
pp. 25-55 ◽  
Author(s):  
Mitchell Oler ◽  
Terry Shevlin ◽  
Ryan Wilson
Keyword(s):  
Multinational Corporations ◽  
Foreign Subsidiaries ◽  
Foreign Earnings ◽  
Tax Savings ◽  
One Year ◽  
The Impact ◽  
Tax Holiday ◽  
Investor Expectations

The American Jobs Creation Act of 2004 was signed into law on October 22, 2004. One of the most significant aspects of this legislation is a temporary tax holiday for dividend repatriations from foreign subsidiaries. U.S. multinational corporations may elect during a one-year window to deduct 85 percent of extraordinary cash dividends received from foreign subsidiaries. In this study, we model the impact that this legislation has on a firm's decision to either repatriate or reinvest foreign earnings from abroad. We then examine investors' assessment of how U.S. multinational corporations will respond to the temporary tax holiday. Our results indicate that investors repriced the tax liability consistent with investors anticipating that U.S. multinational corporations will repatriate a significant portion of their permanently reinvested foreign earnings during the tax holiday.

scholarly journals Mentoring in international assignments: a personality traits perspective

2017 ◽  
Vol 39 (7) ◽  
pp. 1100-1130 ◽  
Author(s):  
Tassilo Schuster ◽  
Judith Ambrosius ◽  
Benjamin Bader
Keyword(s):  
Personality Traits ◽  
Multinational Corporations ◽  
Host Country ◽  
Positive Impact ◽  
Well Being ◽  
Organizational Studies ◽  
Psychological Well Being ◽  
Content Type ◽  
Positive Effects ◽  
The Impact

Purpose The purpose of this paper is to analyze the impact of personality and mentorship on expatriates’ psychological well-being. The authors argue that certain personality traits (extraversion, agreeableness, conscientiousness, emotional stability, and openness to experience) have positive effects on expatriates’ psychological well-being and that these personality traits enable them to derive a greater benefit from mentorship. By doing so, this study identifies for which personality traits which type of mentoring (home or host country mentor) is most beneficial. Design/methodology/approach Based on socioanalytic theory, the authors develop theory-driven hypotheses and test them against data of 334 expatriates. Findings The study shows that several personality traits as well as home country mentorship have a significant positive impact on psychological well-being, whereas host country mentorship shows no significant positive effects. Moreover, the study indicates that home and host country mentorship partially moderates the relationship between personality traits and psychological well-being. Originality/value Since the authors derive important implications for the selection process of expatriates as well as for the implementation of mentoring in multinational corporations, this study is of value for researchers and practitioners in the areas of human resource management and organizational studies.

scholarly journals The Impact of Cultural Distance on the Performance of Foreign Subsidiaries: Evidence From the Korean Market

2018 ◽  
Vol 9 (1) ◽  
pp. 123-134 ◽  
Author(s):  
Hyunjun Park ◽  
Kyungsu Han ◽  
Woojin Joon
Keyword(s):  
Financial Performance ◽  
International Business ◽  
Positive Impact ◽  
Cultural Distance ◽  
Foreign Market ◽  
Foreign Direct Investments ◽  
Foreign Subsidiaries ◽  
Foreign National ◽  
Korean Market ◽  
The Impact

This study investigates whether the cultural distance between Korea and the home countries of foreign subsidiaries in Korea affects the subsidiaries’ financial performance. It contributes to the literature on international business in that it sheds light on cultural distance, a well-established but somewhat neglected concept in international business. Unlike most of the previous studies that have used cultural distance as a control or moderating variable, this study uses it as an independent variable in the context of globalization through foreign direct investments in Korea. Focusing on the possible positive side of broad cultural distance, we hypothesize that the performances of foreign subsidiaries are likely to be better when the cultural distance between their home countries and Korea increases. To test our hypothesis, we have conducted an empirical analysis, using data collected from 472 foreign subsidiaries doing business in Korea. The results support our argument that cultural distance has a positive impact on financial performance. This study finds that having cultural similarities with a foreign market does not guarantee success. Instead, it shows that firms can gain opportunities when incorporating in a foreign national market with broad cultural distance.

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