Mimicry, Knowledge Spillover and Expatriate Assignment Strategy in Overseas Subsidiaries

Lipeng Gary Ge, Cuili Qian and Jiatao Li ()
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Lipeng Gary Ge: University of Groningen
Cuili Qian: University of Texas at Dallas
Jiatao Li: Hong Kong University of Science and Technology

Management International Review, 2019, vol. 59, issue 6, No 5, 1007 pages

Abstract: Abstract Based on neo-institutional theory and knowledge spillover, we argue that the probability of a firm assigning an expatriate manager to a foreign subsidiary is influenced by a combination of mimicry and knowledge spillover from any existing expatriate community in the foreign location. The expatriate community’s influence is hypothesized to be weaker when the firm’s ownership share in its foreign subsidiary is greater but stronger when the cultural distance between a firm’s home country and the foreign host country is greater. Data on 95,156 foreign-invested manufacturing ventures in China is used to test these predictions. The findings show an inverted U-shaped relationship between the assignment of expatriates and the number of expatriates previously sent to the same location by prior foreign investors. This relationship is shown to be moderated by subsidiary ownership, but not by the cultural distance between the investor’s home country and the host country. Implications for research and practice are discussed.

Keywords: Expatriate assignment; Expatriate community; Mimicry; Knowledge spillover; China (search for similar items in EconPapers)
Date: 2019
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Citations: View citations in EconPapers (2)

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DOI: 10.1007/s11575-019-00396-5

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