A transaction cost analysis of staffing decisions in international operations
Gabriel Benito (),
Jaime Bonache-Pérez and
Scandinavian Journal of Management, 2005, vol. 21, issue 1, 101-126
This paper analyzes staffing decisions in foreign subsidiaries from the perspective of transaction cost theory. We focus on the ex post transaction costs of the employment relation. Specifically, we look at the monitoring, bonding, maladaptation, and bargaining costs of conducting activities in specific subsidiaries in a foreign country. We hypothesize that the transaction costs of using expatriates are lower than those generated by local employees, especially in the higher managerial echelons of foreign subsidiaries, but also that costs can be reduced as individuals become more experienced. We also conjecture that ex post transaction costs are influenced by cultural differences between the host and the home countries, and by characteristics of the companies and their subsidiaries. The framework is empirically corroborated by survey data on a sample of 145 Norwegian MNCs.
Keywords: Human; resources; Staffing; decisions; Multinational; firms; Transaction; costs (search for similar items in EconPapers)
References: Add references at CitEc
Citations: View citations in EconPapers (10) Track citations by RSS feed
Downloads: (external link)
Full text for ScienceDirect subscribers only
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:eee:scaman:v:21:y:2005:i:1:p:101-126
Ordering information: This journal article can be ordered from
http://www.elsevier. ... me/872/bibliographic
Access Statistics for this article
Scandinavian Journal of Management is currently edited by Janne Tienari
More articles in Scandinavian Journal of Management from Elsevier
Bibliographic data for series maintained by Catherine Liu ().