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Why a Multinational Firm Chooses Expatriates: Integrating Resource‐Based, Agency and Transaction Costs Perspectives

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  • Danchi Tan
  • J. T. Mahoney

Abstract

abstract This paper develops an integrative organizational economics framework explaining and predicting multinational firms' managerial resource deployments based on resource‐based, agency, and transaction costs theories. Our empirical findings suggest that the governance decision for managerial services of multinational firms is influenced not only by the comparative capabilities of managers, but also by the economic costs to the firm of influencing the behaviours of managers through managerial contracting.

Suggested Citation

  • Danchi Tan & J. T. Mahoney, 2006. "Why a Multinational Firm Chooses Expatriates: Integrating Resource‐Based, Agency and Transaction Costs Perspectives," Journal of Management Studies, Wiley Blackwell, vol. 43(3), pages 457-484, May.
    • Handle: RePEc:bla:jomstd:v:43:y:2006:i:3:p:457-484
    DOI: 10.1111/j.1467-6486.2006.00598.x
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