The Change of Nationality in Top Executives of Foreign Affiliates: A Study of North American, European and Asian MNCs in Japan

Tomoki Sekiguchi and Sachiko Yamao
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Sachiko Yamao: Department of Management and Marketing, University of Melbourne

No 10-11, Discussion Papers in Economics and Business from Osaka University, Graduate School of Economics

Abstract: Using archival data published in 2003 and 2007, we investigated factors that influence the change of nationality of the most senior executives in foreign affiliates of MNCs operating in Japan. Our results show that as the length of operation in Japan increases, the likelihood of a non-Japanese top executive in the affiliate being replaced by a Japanese top executive, was higher than that of a Japanese top executive being replaced by a non-Japanese top executive. We also found that when an affiliate had a Japanese top executive at time one, it was more likely that a non-Japanese executive replaced the person if the affiliate fs foreign ownership ratio increased at time two. In addition, there were notable differences between affiliates of Asian, North American and European MNCs in top executive staffing patterns of Japanese affiliates. Implications from this study and future research directions are discussed herein.

Keywords: MNC; foreign affiliate; top executive; Japan (search for similar items in EconPapers)
JEL-codes: F23 M12 M16 (search for similar items in EconPapers)
Pages: 37 pages
Date: 2010-03
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Persistent link: https://EconPapers.repec.org/RePEc:osk:wpaper:1011

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