Level of Control, Staffing Policy, and Training Needs for Overseas Units of Multinational Corporations: An Integrative Approach

2002 ◽  
Vol 3 (1) ◽  
pp. 105-122
Author(s):  
Hoon Park ◽  
Youngsun Paik ◽  
Cristina Suarez Duffy
Keyword(s):  
Multinational Corporations ◽  
Host Country ◽  
Integrative Model ◽  
Integrative Approach ◽  
Cultural Training ◽  
Functional Training ◽  
Training Requirements ◽  
Host Country Nationals ◽  
Foreign Operations ◽  
Expatriate Managers

This paper suggests an integrative model in which MNCs combine staffing policy with training requirements given the level of control over foreign operations. The main premise of the paper is that different levels of control need determine the type of personnel and the extent of training required for managing foreign operations. At the highest level of control need, expatriate managers are provided with extensive cultural training. Conversely, at the lowest level of control need, host country nationals are given minimal functional training. When the control needs are moderate, firms can select either expatriates or host country nationals. Since the costs incurred in extensive functional training for host country nationals are usually greater than those for expatriates who require only a minimal level of cultural training, MNCs tend to prefer expatriates to host country nationals.

scholarly journals Trust building with Chinese host country nationals

2016 ◽  
Vol 4 (1) ◽  
pp. 44-67 ◽  
Author(s):  
Fenny Ang ◽  
Hwee Hoon Tan
Keyword(s):  
Host Country ◽  
Cultural Intelligence ◽  
Qualitative Data ◽  
Theory And Practice ◽  
Trust Building ◽  
Content Type ◽  
Host Country Nationals ◽  
Building Process ◽  
Expatriate Managers ◽  
Do So

Purpose – Integrating the literature on trust building and cultural intelligence, the purpose of this paper is to understand how expatriate managers build trust with their host country nationals (HCNs) in China. Design/methodology/approach – Qualitative data collected via extensive interviews with 12 expatriate managers and 34 HCNs from seven multinational companies in Shanghai. Findings – The authors find that expatriate managers and HCN managers build trust via competence/ability at the onset. The trust relationship becomes stronger over time with the development of affect-based trust via cultural intelligence of the expatriate managers. Research limitations/implications – Implications for theory and practice following the results are discussed. Originality/value – This study used the cultural intelligence perspective to understand the trust building process. In addition this study interviewed both sides to the trust dyad; the expatriate manager and the HCN manager. Hence, it provides perspectives from both sides of the trust building process, one of the first studies to do so.

The Role of the Manager in the Middle East: An Empirical Study of Multinational Companies

2019 ◽  
Vol 20 (4) ◽  
pp. 887-900
Author(s):  
Aissa Mosbah ◽  
Jaithen Alharbi ◽  
Abdulla Fetais ◽  
Ibrahim Alkandi
Keyword(s):  
Middle East ◽  
Multinational Corporations ◽  
Host Country ◽  
Home Country ◽  
Multinational Companies ◽  
Resource Dependency ◽  
Primary Data ◽  
Host Country Nationals ◽  
Number Of Factors

This article is an empirical investigation into the role of the CEO manager in the affiliates of multinational corporations operating in the Middle East. Grounded in a literature review of the reasons for employing either parent country nationals (PCNs) or host country nationals (HCNs) in top management position in foreign subsidiaries, a number of factors influencing the choice between these alternatives are identified. Using a data collected from 147 multinational companies (MNCs) operating in the Kingdom of Saudi Arabia (KSA), the influence of each of these factors on this selection is empirically tested with the help of primary data. The study proposed that the relationship between the home and host country managers could be linked to agency theory (with the ‘classical’ principal–agent relationship) and to resource dependency theory (implying relations between the branch and other partners based on interdependence). Our results show that the agency and resource dependency mechanisms are indeed used side by side and complementary to each other to exercise control. Home country managers can strategize to implement control by the informal and social means by positioning a sizeable number of managers from the home country within the subsidiary. Indeed, our results revealed this as true.

Moderating effects of decision autonomy and culture novelty on the relationship between expatriate manager leadership styles and host country managers’ job satisfaction: Evidence from the global hotel industry

2021 ◽  
pp. 147059582110134
Author(s):  
Riki Takeuchi ◽  
Cuili Qian ◽  
Jieying Chen ◽  
Jeffrey P Shay
Keyword(s):  
Job Satisfaction ◽  
Boundary Conditions ◽  
Host Country ◽  
Leadership Behaviors ◽  
Moderating Effects ◽  
Host Country Nationals ◽  
General Managers ◽  
Job Attitude ◽  
Expatriate Managers ◽  
Satisfaction Relationship

While the use of expatriate managers to control and manage the foreign subsidiary is well recognized, there is a paucity of literature that considers how expatriate managers’ leadership behaviors affect host country nationals (HCNs). By incorporating leadership contingency perspective into expatriation literature, we examine the boundary conditions of two leadership (planning and consulting) behaviors on HCN managers’ job attitude (i.e., job satisfaction). Specifically, we investigate the moderating effects of decision autonomy and culture novelty of expatriate managers on the aforementioned relationships, using survey data collected from 103 expatriate general managers and 276 HCN managers working in nine American-based multinational hotel chains and found both planning and consulting leadership behaviors to be positively related to HCN managers’ job satisfaction. Decision autonomy and culture novelty acted as boundary conditions of such relationships such that decision autonomy moderated the planning-job satisfaction relationship while culture novelty moderated the consulting-job satisfaction relationship.

scholarly journals Knowledge Transfer Between Expatriates and Host Country Nationals: Contribution of Individual and Social Capital Factors

2016 ◽  
Vol 7 (2) ◽  
pp. 65-87 ◽  
Author(s):  
Maimunah Ismail ◽  
Sayang Syamira Sobri ◽  
Nuruf Afiqah Zulkifly ◽  
Siti Raba'ah Hamzah ◽  
Eriko Yamato
Keyword(s):  
Social Capital ◽  
Knowledge Transfer ◽  
Multinational Corporations ◽  
Host Country ◽  
Shared Vision ◽  
Social Capital Theory ◽  
Individual Factors ◽  
Capital Theory ◽  
Host Country Nationals ◽  
Uncertainty Management Theory

This paper presents a study on the contribution of individual factors (cultural intelligence and feedback-seeking behaviour) and social capital factors (shared vision and trust) on knowledge transfer between expatriates and host country nationals (HCNs) as perceived by expatriates. The study adopted Social Capital Theory, and Anxiety and Uncertainty Management Theory to support the theoretical framework of the investigation. Data were analysed from a sample of 90 expatriates from selected universities and multinational corporations (MNCs) in the area of Klang Valley, Malaysia. The results reveal that there is a positive relationship between individual factors as well as social capital factors and knowledge transfer. In addition, only shared vision shows a significant influence on knowledge transfer. The regression results disclose that the variables explain 24.1% of variance in knowledge transfer.

Improving Global Knowledge Management Through Inclusion of Host Country Workforce Input

2008 ◽  
pp. 167-182 ◽  
Author(s):  
Yongsun Paik
Keyword(s):  
Knowledge Management ◽  
Knowledge Base ◽  
Multinational Corporations ◽  
Host Country ◽  
International Management ◽  
International Strategy ◽  
Foreign Subsidiary ◽  
Global Knowledge ◽  
Inclusive Approach ◽  
Expatriate Managers

Within a framework of international strategy for multinational corporations, this chapter examines the important opportunities afforded by taking a more inclusive approach to the foreign subsidiary host country workforce (HCW). It argues that past international management writing and practice, with its expatriate bias, has neglected consideration of this important resource. Not only can the HCW help expatriate managers be more successful and have a better experience in the host country, but it can contribute to and benefit from the corporate knowledge base, leading to more effective global knowledge management. The authors discuss means by which a multinational corporation can effectively include the HCW in its knowledge management activities.

The categorization of expatriates and the support offered by host country nationals

2016 ◽  
Vol 4 (1) ◽  
pp. 18-43 ◽  
Author(s):  
Shirley C. Sonesh ◽  
Angelo S. DeNisi
Keyword(s):  
Host Country ◽  
Small Sample Size ◽  
Small Sample ◽  
Content Type ◽  
Host Country Nationals ◽  
Group Members ◽  
Expatriate Assignments ◽  
The Right ◽  
National Stereotypes

Purpose – Although several authors have suggested that host country nationals (HCNs) play an important role in the management of expatriates (e.g. Toh and DeNisi, 2003; Farh et al., 2010), research has also suggested that this relationship is not always good, and the flow of critical information to expatriates can be limited. This is especially true when HCNs categorize the expatriates as “out-group” members. The purpose of this paper is to examine potential determinants of categorization decisions as well as potential outcomes related to expatriate socialization. Design/methodology/approach – The paper employs a dyadic survey approach to determine the antecedents to expatriate categorization and HCN socialization behaviors from the perspective of both the expatriate and HCN. Findings – The results of survey data from 65 expatriate-HCN dyads indicated that expatriate ethnocentrism and the salience of the expatriates’ nationality were important predictors of categorization, but that categorization was related to only one dimension of socialization. However, affect was found to play a role in predicting socialization behaviors. Research limitations/implications – There is potential selection bias since expatriates chose HCNs as respondents, but results suggested this was not a serious problem. Other limitations include a relatively small sample size and the fact that a number of contextual issues such as national stereotypes and MNC strategy, are not controlled for. Practical implications – Implications of these findings for the successful management of expatriate assignments include sending over expatriates with the right relational skills, and those low in ethnocentrism, rather than just the right technical skills. Originality/value – The present study was one of the first to empirically test the potential role of categorization in the process of socialization.

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