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| Author: | Benito, G.R.G. (et al.) |
| Title: | A transaction cost analysis of staffing decisions in international operations |
| Journal: | Scandinavian Journal of Management
2005 : MAR, VOL. 21:1, p. 101-126 |
| Index terms: | foreign subsidiary companies human resource management multinational companies staffing transaction costs |
| Language: | eng |
| Abstract: | Staffing decisions in foreign subsidiary companies are analyzed here from the perspective of transaction cost theory. The focus is on the ex post costs of the employment relation. Specifically, the scrutiny is on the monitoring, bonding, maladaptation and bargaining costs of conducting activities in specific subsidiaries in a foreign country. It is hypothesized that the transaction costs of using expatriates are lower than those generated by local employees, especially in the higher managerial echelons of foreign subsidiaries. |
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