Institutional environments, staffing strategies, and subsidiary performance

Lessons from Japanese MNCs

Ajai Gaur, Andrew Delios, Kulwant Singh

Research output: Contribution to conferencePaper

1 Citation (Scopus)

Abstract

We investigate the issue of overseas subsidiary staffing by parent country nationals (expatriates) in Japanese firms. We adopt institutional perspectives to advance understanding of how the host country environment influences subsidiary staffing strategy, moving beyond traditional cultural distance measures of host country complexity. We propose that firms rely less on parent company nationals in less developed institutional environments for reasons related to subsidiary legitimacy and adaptation to the host environment. Further, we expect the positive influence of expatriate staffing levels on subsidiary performance to be weaker, the more developed the institutional environment. Results based on an analysis of expatriate employment levels in more than 13,015 foreign subsidiaries of 2,952 Japanese firms in 48 countries substantially support our arguments. Our study support the view that institutional theory measures significantly explain subsidiary staffing decisions, and do so more consistently than cultural distance.

Original languageEnglish (US)
StatePublished - Dec 1 2005
Externally publishedYes
Event65th Annual Meeting of the Academy of Management, AOM 2005 - Honolulu, HI, United States
Duration: Aug 5 2005Aug 10 2005

Other

Other65th Annual Meeting of the Academy of Management, AOM 2005
CountryUnited States
CityHonolulu, HI
Period8/5/058/10/05

Fingerprint

Subsidiaries
Institutional environment
Staffing
Subsidiary performance
Expatriates
Cultural distance
Japanese firms
Host country
Institutional perspective
Foreign subsidiaries
Distance measure
Legitimacy
Parent company
Institutional theory

All Science Journal Classification (ASJC) codes

  • Information Systems and Management

Cite this

Gaur, A., Delios, A., & Singh, K. (2005). Institutional environments, staffing strategies, and subsidiary performance: Lessons from Japanese MNCs. Paper presented at 65th Annual Meeting of the Academy of Management, AOM 2005, Honolulu, HI, United States.
Gaur, Ajai ; Delios, Andrew ; Singh, Kulwant. / Institutional environments, staffing strategies, and subsidiary performance : Lessons from Japanese MNCs. Paper presented at 65th Annual Meeting of the Academy of Management, AOM 2005, Honolulu, HI, United States.
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Gaur, A, Delios, A & Singh, K 2005, 'Institutional environments, staffing strategies, and subsidiary performance: Lessons from Japanese MNCs' Paper presented at 65th Annual Meeting of the Academy of Management, AOM 2005, Honolulu, HI, United States, 8/5/05 - 8/10/05, .

Institutional environments, staffing strategies, and subsidiary performance : Lessons from Japanese MNCs. / Gaur, Ajai; Delios, Andrew; Singh, Kulwant.

2005. Paper presented at 65th Annual Meeting of the Academy of Management, AOM 2005, Honolulu, HI, United States.

Research output: Contribution to conferencePaper

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Gaur A, Delios A, Singh K. Institutional environments, staffing strategies, and subsidiary performance: Lessons from Japanese MNCs. 2005. Paper presented at 65th Annual Meeting of the Academy of Management, AOM 2005, Honolulu, HI, United States.