Staff localization and organizational characteristics: Western business operations in China

Jan Selmer

Asia Pacific Business Review, 2003, vol. 10, issue 1, 43-57

Abstract: Localizing their staff is a common aspiration among foreign firms in China. The capability of foreign companies to build strong local management teams has been identified as crucial for their future success. However, because of the uneven progress so far, it has been suggested that some types of organizations may be more disposed to localize than others. To explore this issue, a mail survey was directed at Western business operations in China. Two sets of variables were examined: the nature of the organization in China and the characteristics of the parent organization. Unexpectedly, the results showed that the nature of the organization in China was not associated with staff localization. On the other hand, as expected, two characteristics of the parent corporation seemed to matter. International experience of the parent corporation had a positive relationship with staff localization while the percentage of turnover from foreign operations had a negative association with staff localization. Although highly tentative, due to the exploratory character of this investigation, it seems that the characteristics of the parent corporation seems to play a more important role in the localization process than the nature of the organization in China.

Date: 2003
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DOI: 10.1080/13602380412331288800

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