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Author:Colakoglu, S.
Caligiuri, P.
Title:Cultural distance, expatriate staffing and subsidiary performance: the case of US subsidiaries of multinational corporations
Journal:International journal of human resource management
2008 : FEB, VOL. 19:2, p. 223-239
Index terms:culture
multinational companies
subsidiary companies
Freeterms:expatriates
Language:eng
Abstract:This paper deals with cultural distance and the use of parent country expatriates in the US subsidiaries of 52 multinational corporations. Hypotheses based on transaction costs theory are tested, and the results indicate that firms tend to rely more heavily on parent country expatriates whenever cultural distance from the subsidiary occurs. The paper also states that multinational corporations face a bounded rationality problem in staffing those subsidiaries, which are culturally distant.
SCIMA record nr: 267697
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