Expatriates, subsidiary autonomy and the overseas subsidiary performance of MNEs from an emerging economy

Tong, Fang; Liu, Xiaohui; Gao, Lan; Xia, Enjun

doi:10.1080/09585192.2017.1284883

Cited by 25 publications

(24 citation statements)

References 117 publications

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“…Deploying expatriates can also be viewed as a type of cultural control because it creates a high degree of sharing of values and goals between parent firms and their foreign subsidiaries (Alharbi, Gelaidan, Al-Swidi, & Saeed, 2016). By contrast, allowing a subsidiary to hire a local country head helps subsidiaries increase their autonomy and reduce the level of parent firm control over foreign subsidiaries (Tao, Liu, Gao, & Xia, 2018).…”

Section: Hypothesis 2: Whether a Foreign Subsidiary Directly Reports To Its Parent Firm Weakens The Positive Relationship Between Parent mentioning

confidence: 99%

Foreign subsidiary CSR as a buffer against parent firm reputation risk

Zhou

Wang

2020

J Int Bus Stud

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This study examines the influence of parent firm reputation risk on the level of corporate social responsibility activities of foreign subsidiaries. We first argue that a strong reputation risk spillover occurs from parent firms to their foreign subsidiaries due to the high visibility of multinationals, the control of parent firms over their subsidiaries, and the liability of foreignness associated with foreign firms in host countries. Then, we argue that subsidiaries may resort to CSR in their host country to reduce the spillover effect. Thus, we hypothesize a positive relationship between parent firm reputation risk and foreign subsidiary CSR activities. Moreover, we explore several contingency factors at both the parent firm and subsidiary levels that affect the extent of spillover and the need for subsidiaries to use CSR as a buffer against parent firm reputation risk. We find that the positive relationship between parent firm reputation risk and foreign subsidiary CSR activities is weaker for foreign subsidiaries that directly report to parent firm, with longer operations in the host country and larger institutional distance between host and home countries. Using a unique sample of subsidiaries of large multinationals in China from 2009 to 2016, we find general support for our arguments.

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Section: Hypothesis 2: Whether a Foreign Subsidiary Directly Reports To Its Parent Firm Weakens The Positive Relationship Between Parent mentioning

confidence: 99%

Foreign subsidiary CSR as a buffer against parent firm reputation risk

Zhou

Wang

2020

J Int Bus Stud

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“…As described earlier, most of the assumptions used to identify participants as expatriates could not differentiate which home entity was involved and no analysis was undertaken as to the value implications on the home(s) losing staff through an intra-organizational, international move. In any event, the underlying findings indicate contradictory evidence with some reporting an increase in the number of IAs in a subsidiary correlated with decreased performance Tao et al, 2018) and others reporting increased performance Gong, 2006;Hyun et al, 2015). However, the majority of the latter establish that this value only exists if certain relational characteristics are present as discussed above.…”

Section: External Relational Factorsmentioning

confidence: 96%

The organizational value of international assignments – the relational underpinning

Renshaw

Parry

Dickmann

2020

The International Journal of Human Resource Management

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The organizational value of international assignments (IAs), is unclear and rarely measured by organizations. We argue that taking a relational perspective may enable a greater understanding of the value of IAs to organizations. A relational perspective involves focusing upon the relationship between the home and host organizations participating in an IA. Our literature review combines separate strands of research from the fields of Human Resource Management, International Business and Global Mobility to investigate whether such a relational underpinning exists. Based on this we develop a relational framework enabling the clarification of extant knowledge and illuminating the contradictions, uncertainties and areas for further research. As a result, we offer exploratory propositions and a future research agenda to improve our knowledge and understanding of this fundamental topic. Through reframing extant knowledge of IA organizational value we enable HR departments to refine their global mobility strategies and guide their choices amongst assignment options.

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“…Among the challenges of HR functions in EMNEs, Meyer and Xin (2018) have suggested that EMNEs face obstacles in recruiting talent with international experience to fill leadership roles. On the other hand, EMNEs tend to rely on expatriates to facilitate tighter control over their overseas subsidiaries, and this provides career development for expatriates, but it negatively affects subsidiary autonomy and performance (Tao et al 2018). Moreover, the knowledge transfer role of expatriates from EMNEs in incorporating home and host country cultural values may have been influenced by expatriate training and development (Jackson and Horwitz 2018).…”

Section: Expatriate Management Of Emnesmentioning

confidence: 99%

Expatriate Management of Emerging Market Multinational Enterprises: A Multiple Case Study Approach

Zhong

Zhu

Zhang

2021

JRFM

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Expatriate management has evolved through the practices of developed economy multinational enterprises (DMNEs), with the aim of improving expatriate adaptability, cross-cultural adjustment, and performance. However, most of these studies focus on expatriates from developed countries and try to help DMNEs instead of emerging market MNEs (EMNEs). In a turbulent global economy, how EMNEs manage their expatriates when conducting business through their outward foreign direct investment (FDI) is understudied. This empirical study aims to address this research gap by utilising a qualitative approach and a multiple case study. It has conducted semi-structured interviews with expatriates, executives, and middle managers of Chinese MNEs in 2014. It contributes as one of the few to systematically examine expatriate related issues in the context of EMNEs with first-hand empirical evidence. The findings show that EMNEs are leapfrogging with their internationalisation and hence their expatriate policies are often ad hoc without systematic planning. Moreover, this study has contributed to practice, especially to EMNEs, regarding the way they need to improve their expatriate policies and practices.

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Expatriates, subsidiary autonomy and the overseas subsidiary performance of MNEs from an emerging economy

Cited by 25 publications

References 117 publications

Foreign subsidiary CSR as a buffer against parent firm reputation risk

Foreign subsidiary CSR as a buffer against parent firm reputation risk

The organizational value of international assignments – the relational underpinning

Expatriate Management of Emerging Market Multinational Enterprises: A Multiple Case Study Approach

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