Beyond nationality: International experience as a key dimension for subsidiary staffing choices in MNEs

Abstract

Purpose

The literature on international staffing in multinational enterprises (MNEs) often focuses on staffing choices based on nationality categories (e.g. parent-country nationals, host-country nationals, third-country nationals) for key positions in subsidiaries when examining their impacts on subsidiary outcomes. Considering both nationality and international experience, the purpose of this paper is to suggest an integrative typology to identify and classify various types of traditional and alternative subsidiary staffing options and evaluate them in relation to social capital and knowledge flows across MNE organizations.

Design/methodology/approach

Based on a social capital view of MNEs, the authors propose a typology of subsidiary staffing options founded on the dimensions of nationality and the location of prior international experience of incumbents of key positions. Then traditional as well as alternative staffing options from the literature are identified and evaluated corresponding to each type of staffing option in the framework.

Findings

The typology identifies nine types of subsidiary staffing options. It includes and classifies the traditional and alternative staffing options, while highlighting types which need further research. The study also suggests impacts of the traditional and alternative staffing type on social capital and knowledge flows in MNEs.

Originality/value

The new typology identifies various types of subsidiary staffing options comprehensively and evaluates them systematically. HRM specialists can classify subsidiary managers based on the typology and examine which staffing option would be desirable given a specific subsidiary context. The research also provides novel insights on what needs to be considered to select and develop subsidiary managers who can build internal and external social capital in MNEs.

Citation

Kim, C., Chung, C. and Brewster, C. (2019), "Beyond nationality: International experience as a key dimension for subsidiary staffing choices in MNEs", Journal of Global Mobility, Vol. 7 No. 3, pp. 269-284. https://doi.org/10.1108/JGM-09-2018-0050