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Perceived senior leadership opportunities in MNCs: The effect of social hierarchy and capital

Author

Listed:
  • Orly Levy

    (IMD, Lausanne, Switzerland)

  • Sully Taylor

    (School of Business Administration, Portland State University, Portland, USA)

  • Nakiye A Boyacigiller

    (Sabanci School of Management, Sabanci University, Istanbul, Turkey)

  • Todd E Bodner

    (Department of Psychology, Portland State University, Portland, USA)

  • Maury A Peiperl

    (IMD, Lausanne, Switzerland)

  • Schon Beechler

    (INSEAD, Long Beach, USA)

Abstract

Drawing on the structural perspective in organizational theory, this study develops a conceptual framework of the social hierarchy within the multinational corporation (MNC). We suggest that parent country nationals (PCNs), host country nationals (HCNs), and third country nationals (TCNs) occupy distinctively different positions in the social hierarchy, which are anchored in their differential control or access to various forms of capital or strategically valuable organizational resources. We further suggest that these positions affect employees’ perceptions of senior leadership opportunities, defined as the assessment of the extent to which nationality and location influence access to senior leadership opportunities. Using multilevel analysis of survey data from 2039 employees in seven MNCs, the study reveals two significant findings. First, HCNs and TCNs perceive that nationality and location influence access to senior leadership opportunities more than PCNs. Second, three moderating factors – gender, tenure, and education – increase the perception gaps between PCNs on the one hand and HCNs and TCNs on the other, although these results are inconsistent. These findings indicate that the structural position of PCNs, HCNs, and TCNs in the social hierarchy affect sense-making and perceptions of access to senior leadership opportunities.

Suggested Citation

  • Orly Levy & Sully Taylor & Nakiye A Boyacigiller & Todd E Bodner & Maury A Peiperl & Schon Beechler, 2015. "Perceived senior leadership opportunities in MNCs: The effect of social hierarchy and capital," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 46(3), pages 285-307, April.
    • Handle: RePEc:pal:jintbs:v:46:y:2015:i:3:p:285-307
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    Citations

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    Cited by:

    1. Sarabi, Almasa & Froese, Fabian J. & Hamori, Monika, 2017. "Is inpatriate assignment experience a ticket to the top of a foreign subsidiary? The moderating effect of subsidiary context," Journal of World Business, Elsevier, vol. 52(5), pages 680-690.
    2. Michel Hermans & William Newburry & Marcelo J. Alvarado-Vargas & Carlos M. Baldo & Armando Borda & Edwin G. Durán-Zurita & José Maurício Galli Geleilate & Massiel Guerra & Maria Virginia Lasio Morello, 2017. "Attitudes towards women’s career advancement in Latin America: The moderating impact of perceived company international proactiveness," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 48(1), pages 90-112, January.
    3. Farndale, Elaine & Beamond, Maria & Corbett-Etchevers, Isabelle & Xu, Shiyong, 2022. "Accessing host country national talent in emerging economies: A resource perspective review and future research agenda," Journal of World Business, Elsevier, vol. 57(1).
    4. Dahms, Sven, 2019. "Foreign-owned subsidiary knowledge sourcing: The role of location and expatriates," Journal of Business Research, Elsevier, vol. 105(C), pages 178-188.
    5. Friederike Mathey & Evgenia I. Lysova & Svetlana N. Khapova, 2024. "How is social capital formed and leveraged in international careers? A systematic review and future research directions," Management Review Quarterly, Springer, vol. 74(3), pages 1209-1248, September.
    6. Michailova, Snejina & Fee, Anthony & DeNisi, Angelo, 2023. "Research on host-country nationals in multinational enterprises: The last five decades and ways forward," Journal of World Business, Elsevier, vol. 58(1).
    7. Mukhammadyusuf Shaymardanov & Suvi Heikkinen & Anna-Maija Lämsä, 2023. "Social Networks of Women in Organizations: Evolution of Research and Future Research Agenda," South Asian Journal of Business and Management Cases, , vol. 12(1), pages 97-112, April.

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