Relationship between Cultural Origin of Multinational Companies and Employing Expatriates in Foreign Subsidiaries in Central and Eastern Europe

János Fehér, Kollár Péter, Szobi Ádám, Urbán Anna, Jarjabka Ákos and Poór József
Additional contact information
Kollár Péter: senior lecturer at Hungarian University of Agriculture and Life Sciences
Szobi Ádám: SCRUM Master at InnovITech Co
Urbán Anna: Associate Professor (latest position) at University of Miskolc
Jarjabka Ákos: Associate Professor, Head of Institute at University of Pécs
Poór József: Full Professor at J. Selye University

Zagreb International Review of Economics and Business, 2022, vol. 25, issue 2, 19-38

Abstract: In the present study, we examine the question of whether the cultural characteristics of the country of the parent company are related to the posting practices of the parent company. According to our hypothesis, the management culture of the sending (parent) company influences the employment of foreign expats in local subsidiaries. In this research we use interviews and multivariate statistical analysis of survey data from five CEE countries, an important but relatively less examined region for global HR mobility. We found a significant relationship between cultural differences and expatriate assignment practices of MNCs. However, based on the strength of the relationship, we can conclude that in addition to management culture, other influencing factors typically influence posting decisions. Our results support Hofstede’s suggestion about the cultural dependence of management methods from a specific, management of expatriates, perspective.

Keywords: management of expatriates; national culture; multinational companies; subsidiaries; CEE countries (search for similar items in EconPapers)
JEL-codes: M (search for similar items in EconPapers)
Date: 2022
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Persistent link: https://EconPapers.repec.org/RePEc:vrs:zirebs:v:25:y:2022:i:2:p:19-38:n:1002

DOI: 10.2478/zireb-2022-0013

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