National culture and expatriate deployment

Abstract

We hypothesize that expatriate deployment is a control function predicted by home country culture dimensions with transaction cost and agency repercussions (rather than culture in the aggregate). This departure from the traditional conceptualization and measurement of cultural impact also yields a hypothesized asymmetrical effect, which is tested for a multi-country sample of 236 multinational subsidiaries. Using multiple measures of national culture, hypotheses are supported, with assertiveness and power distance confirmed as prime predictors of expatriate deployment. Journal of International Business Studies (2008) 39, 1293–1309. doi:10.1057/palgrave.jibs.8400361

Performance management practices within emerging market multinational enterprises: the case of Brazilian multinationals

“…Typically MNEs from high-power distance cultures tend to favour centralised practices and attempt to exercise control, while those from low-power distance cultures tend to favour consultative management styles with their subsidiaries (Brock, Shenkar, Shoham, & Siscovick, 2008). Brazil also scores high on uncertainty avoidance -the extent to which individuals in a society can tolerate ambiguity (Hofstede, 1994, p. 11;Volkema, 1999).…”

“…. (and prefer) the appointment of expatriates who are "tried and true" principals or trusted agents' (Brock et al, 2008(Brock et al, , p. 1297. In addition, Brazilian firms operate in a high collectivist culture (Beekun, Stedham, & Yamamura, 2003) typically adopting a person-centred approach management style, and valuing non-monetary social goals over financial performance (Dant, Perrigot, & Cliquet, 2008;Nicholls-Nixon et al, 2011).…”

Linguistic gender marking gap and female staffing at MNC’s

“…The flexibility, agility and complexity of this network of international subsidiaries underpin the competitive advantage of the MNC as suggested by Junni, Sarala, Tarba, and Weber (2015), but leveraging them requires effective control (Brock et al, 2008) by means of ownership, managerial oversight, direct monitoring, accounting information systems, reward or incentive systems, behavioural control (Heimerik, Schijven, & Gates, 2012;Hoskisson & Hitt, 1988;Snell, 1992), or the assignment of expatriate staff (Brock et al, 2008;Martinez & Jarillo, 1989). Minimising internal organisational costs emphasises the role of organisational control when the parent company transmits relevant directives for subsidiaries to follow in order to achieve combined organisational goals.…”

“…Emphasising the importance of cultural control for minimising the danger of cultural distance, Boyacigiller (1990) and Harzing (1995) both suggested using more expatriates at host subsidiaries. The literature of culture distance and expatriates assignment is well developed (e. g. Brock, Shenkar, Shoham, & Siscovick, 2008). Sarala, Junni, Cooper, and Tarba (2014) also pointed out that cultural distance may be minimised by knowledge transfer through deployment of parent employees to subsidiaries.…”

Internacionalização de empresas brasileiras: desenvolvimento de gestores como fator essencial para a estratégia de negócios

“…Fleury and Sampaio (2002), when discussing organizational culture, also cite Schein (2001) Another issue that stands out when the cultural shock of expatriates in the country of destination is analyzed, particularly within the environment of the foreign branch, is why the multinational allocates expatriates to its subsidiaries. Brock et al (2008), when analyzing this, comment that, above all, organizations try to find a way of controlling their units in order to promote and uphold strategic objectives, preserve consistency in standards, implement policies developed at the head office, reduce risks and avoid misalignment and duplications that might be costly.…”