Do Japanese MNCs use expatriates to contain risk in Asian host countries?

Jean-Pascal Bassino (), Marion Dovis () and Pierre van der Eng

Asia Pacific Business Review, 2015, vol. 21, issue 3, 383-402

Abstract: We investigate the impact of host-country risk on the expatriation strategies of multinational firms, using data on Japanese subsidiary firms in manufacturing industries in 13 host countries in Asia. We find that country risk is negatively correlated with the degree of expatriation and that, rather than host-country risk, firm-specific factors (particularly capital intensity, ownership share of parent firms in subsidiaries and the age of the venture) explain most of the variation in the degree to which subsidiaries rely on Japanese expatriates. Contrary to previous studies, the capital intensity of production is a key explanatory firm-specific variable that correlates positively with the degree of expatriation. Japanese multinational companies do not rely on expatria127=tes to off-set host-country risk, but to mitigate risk to parent investment in subsidiaries.

Date: 2015
References: View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
http://hdl.handle.net/10.1080/13602381.2015.1022426 (text/html)
Access to full text is restricted to subscribers.

Related works:
Working Paper: Do Japanese MNCs use Expatriates to Contain Risk in Asian Host Countries? (2015)
Working Paper: Do Japanese MNCs use expatriates to contain risk in Asian host countries? (2015)
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:taf:apbizr:v:21:y:2015:i:3:p:383-402

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/FAPB20

DOI: 10.1080/13602381.2015.1022426

Access Statistics for this article

Asia Pacific Business Review is currently edited by Professor Chris Rowley and Malcolm Warner

More articles in Asia Pacific Business Review from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().