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Similarity to successful peers and the implications for subsidiary performance

Naoki Ando ()
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Naoki Ando: Hosei University

Asian Business & Management, 2016, vol. 15, issue 2, 110-136

Abstract: Abstract This study explores whether the performance of a lower-performing subsidiary improves when it is staffed in a similar manner to high-performing subsidiaries. Using a panel data set comprising 11 266 observations of foreign subsidiaries of Japanese firms, it is found that in subsidiaries with strategic importance, staff deployment similar to that of high-performing peers has a positive impact on the subsidiary’s performance. This study also demonstrates that when institutional distance between the host and home countries is large, staff deployment similar to that of high-performing peers has a negative impact on performance.

Keywords: International human resource management; Japanese firm; expatriate; similarity; subsidiary performance; subsidiary staffing (search for similar items in EconPapers)
Date: 2016
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