Expatriate assignments vs localization of management in China

Abstract

He holds a master degree in psychology and a doctorate in business administration from the University of Erlangen-Nürnberg. His research interests include international human resource management, opportunism, trust and control in transnational business relationships, and knowledge transfer in MNCs. He is actively involved in international executive education and has consulted with a variety of organizations. Recently he has edited a book on international risk management.

Environmental Multi‐dimensionality and Staff Localization in Multinational Enterprises: The Case of Korean Firms

“…Previous studies demonstrated that subsidiary ownership is a major determinant of subsidiary staffing composition in MNEs, as it is associated with exercise of control over subsidiaries (Gaur et al, 2007; Harzing, 2001; Kühlmann & Hutchings, 2010). When parent firms have greater ownership of a subsidiary, they also have greater incentive and need to exercise control over it and a greater demand for consistency with the parent firm's goals and objectives (Hennart, 1991).…”

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

“…Given its tacit character, knowledge is rooted in an individual's experience and can consequently be best transferred through personal interaction between those who have the knowledge of the company (i.e. expatriates) and the local staff in subsidiaries (Brock, Shenkar, Shogam, & Sisvocik, 2014;Kobrin, 1988;Kühlmann & Hutchings, 2010).…”

“…Locally hired managers are considered to have local knowledge, defined as "contextual knowledgethe knowledge that develops in interaction among people with the programs, operations or objects (physical artefacts) that are specific to a local context" (Yanow, 2004: S11-S12). Local hires are familiar with the local context and have a better understanding of it (Kühlmann & Hutchings, 2010); they share the same language and culture with local stakeholders (Barner-Rasmussen, Ehrnrooth, Koveshinikov, & Mäkelä, 2014;Fang et al, 2010) and they have accumulated deep personal local knowledge by living in a particular country. 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).…”

“…Researchers have noted how local hires will contribute to the realization of a locally responsive strategy (Hutchings, 2005;Kühlmann & Hutchings, 2010;Reiche, 2007;Tan & Mahoney, 2006). A higher ratio of local hires will be more beneficial for an LR strategy than expatriates because such managers are more able to shed light on specific local offering decisions, on how to preempt and counter local indigenous competitors, respect local traditions, or communicate with local customers as needs change.…”

Work and Family Interface in the International Career Context

“…SIEs have also been found to develop larger social networks (Näsholm 2012;Von Borell de Araujo et al 2014). Corporate assignees, on the other hand, find it more difficult to learn the local language (Kühlmann and Hutchings 2010). SIEs are thus more likely to have stronger cross-cultural abilities and larger social networks including host-country nationals.…”