Top management staffing and subsidiary performance under home-country uncertainty

Eunbi Kim ()
Additional contact information
Eunbi Kim: Franklin & Marshall College

Asian Business & Management, 2023, vol. 22, issue 4, No 11, 1513-1543

Abstract: Abstract This study investigates the effects of top management staffing on foreign subsidiary performance, moderated by the occurrence of uncertainty shock in the home market. Building on a refined model of agency theory, this study introduces the context of a parent country to the existing theoretical framework and addresses the importance of appointing top managers with an intermediary status between host and home countries. The empirical evidence from foreign subsidiaries of South Korean firms in 102 countries (1992–2007) shows that assignment of immigrant top managers originating from the parent country is positively associated with subsidiary performance in the wake of home-country uncertainty. These findings highlight the benefits of appointing managers with dual knowledge structure and adaptive flexibility in the top management position in foreign locations.

Keywords: Immigrant; Firm performance; Home-country uncertainty; Top manager; Cross-cultural management; Biculturals (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://link.springer.com/10.1057/s41291-022-00212-3 Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pal:abaman:v:22:y:2023:i:4:d:10.1057_s41291-022-00212-3

Ordering information: This journal article can be ordered from
https://www.palgrave.com/gp/journal/41291

DOI: 10.1057/s41291-022-00212-3

Access Statistics for this article

Asian Business & Management is currently edited by Fabian Jintae Froese

More articles in Asian Business & Management from Palgrave Macmillan
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().