 Cultural diversification, human resource-based coordination, and downside risks of multinationalitySangcheol Song Journal of Business Research, 2022, vol. 142, issue C, 562-571 Abstract: We take the multinational operational flexibility perspective to examine how human resource-based coordination allows multinational corporations to retain the flexibility value of multinationality in diverse cultures among host countries. We posit that home national expatriates, host country specialists, and cross-cultural training programs within the same company network promote cultural understanding, facilitate effective coordination, and consequently curb downside risks of multinationality. By employing the Tobit two-stage model on a large sample of Korean multinational corporations, we find that a broader existence of three human resource programs help curbing downside risks, and the downside risk reduction effect is stronger under high cultural diversification. These findings imply the positive roles of cross-cultural coordinative mechanisms in retaining the flexibility value of multinationality. Keywords: Multinationality; Downside risks; Cultural diversification; Home national expatriates; Host country specialists; Cross-cultural training programs (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:jbrese:v:142:y:2022:i:c:p:562-571 DOI: 10.1016/j.jbusres.2022.01.008 Access Statistics for this article Journal of Business Research is currently edited by A. G. Woodside More articles in Journal of Business Research from Elsevier |
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