MNC subsidiary size and expatriate control: Resource-dependence and learning perspectives

George Z. Peng and Paul W. Beamish

Journal of World Business, 2014, vol. 49, issue 1, 51-62

Abstract: Based on resource-dependence theory, we hypothesize a U-shaped relationship between multinational corporations’ subsidiary size and expatriate staffing level. Drawing on both resource-dependence and learning perspectives, the U-shaped relationship is further hypothesized to be moderated by parent-firm size, the amount of equity ownership of the parent firm in the subsidiary, and subsidiary age. A sample of 11,754 Japanese overseas subsidiaries was used to test the hypotheses. Results supported all four hypotheses both cross-sectionally and longitudinally, and explained 24% of the variance in expatriate staffing level. The theoretical and practical implications of these findings are discussed.

Keywords: Expatriate staffing; Organizational learning; Organizational slack; Resource-dependence theory; Subsidiary autonomy; Subsidiary size (search for similar items in EconPapers)
Date: 2014
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Citations: View citations in EconPapers (27)

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DOI: 10.1016/j.jwb.2012.11.001

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