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MNC subsidiary size and expatriate control: Resource-dependence and learning perspectives

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  • Peng, George Z.
  • Beamish, Paul W.

Abstract

Based on resource-dependence theory, we hypothesize a U-shaped relationship between multinational corporations’ subsidiary size and expatriate staffing level. Drawing on both resource-dependence and learning perspectives, the U-shaped relationship is further hypothesized to be moderated by parent-firm size, the amount of equity ownership of the parent firm in the subsidiary, and subsidiary age. A sample of 11,754 Japanese overseas subsidiaries was used to test the hypotheses. Results supported all four hypotheses both cross-sectionally and longitudinally, and explained 24% of the variance in expatriate staffing level. The theoretical and practical implications of these findings are discussed.

Suggested Citation

  • Peng, George Z. & Beamish, Paul W., 2014. "MNC subsidiary size and expatriate control: Resource-dependence and learning perspectives," Journal of World Business, Elsevier, vol. 49(1), pages 51-62.
    • Handle: RePEc:eee:worbus:v:49:y:2014:i:1:p:51-62
    DOI: 10.1016/j.jwb.2012.11.001
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