Managers’ nationalities and FDI’s productivity: evidence from Korean firm-level data

Chin Hee Hahn, Kazunobu Hayakawa and Tadashi Ito

Industrial and Corporate Change, 2016, vol. 25, issue 6, 941-953

Abstract: This study contributes to the literature on the impact of managerial structure on firms’ productivity, considering the trade-off between local managers and expatriate managers. It employs data on Korean-origin foreign direct investment and first finds that the local manager ratio is associated with productivity improvements in uncertain business environments (developing countries) but not in stable and predictable business environments (developed countries). Second, this study finds that the local manager ratio is associated with raised firm productivity only in less research and development-intensive industries. Policy implications are drawn from these findings.

Date: 2016
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