IDEAS home Printed from https://ideas.repec.org/a/vrs/zirebs/v25y2022i2p19-38n1002.html
   My bibliography  Save this article

Relationship between Cultural Origin of Multinational Companies and Employing Expatriates in Foreign Subsidiaries in Central and Eastern Europe

Author

Listed:
  • Fehér János

    (Associate Professor at Károli Gáspár University of the Reformed Church in Hungary, Viola u. 2-4, 1042 Budapest, Hungary; +36 1 3708601; fax: +36 1 2316026)

  • Kollár Péter

    (senior lecturer at Hungarian University of Agriculture and Life Sciences)

  • Szobi Ádám

    (SCRUM Master at InnovITech Co)

  • Urbán Anna

    (Associate Professor (latest position) at University of Miskolc)

  • Jarjabka Ákos

    (Associate Professor, Head of Institute at University of Pécs)

  • Poór József

    (Full Professor at J. Selye University)

Abstract

In the present study, we examine the question of whether the cultural characteristics of the country of the parent company are related to the posting practices of the parent company. According to our hypothesis, the management culture of the sending (parent) company influences the employment of foreign expats in local subsidiaries. In this research we use interviews and multivariate statistical analysis of survey data from five CEE countries, an important but relatively less examined region for global HR mobility. We found a significant relationship between cultural differences and expatriate assignment practices of MNCs. However, based on the strength of the relationship, we can conclude that in addition to management culture, other influencing factors typically influence posting decisions. Our results support Hofstede’s suggestion about the cultural dependence of management methods from a specific, management of expatriates, perspective.

Suggested Citation

  • Fehér János & Kollár Péter & Szobi Ádám & Urbán Anna & Jarjabka Ákos & Poór József, 2022. "Relationship between Cultural Origin of Multinational Companies and Employing Expatriates in Foreign Subsidiaries in Central and Eastern Europe," Zagreb International Review of Economics and Business, Sciendo, vol. 25(2), pages 19-38.
    • Handle: RePEc:vrs:zirebs:v:25:y:2022:i:2:p:19-38:n:1002
    DOI: 10.2478/zireb-2022-0013
    as

    Download full text from publisher

    File URL: https://doi.org/10.2478/zireb-2022-0013
    Download Restriction: no
    File URL: https://libkey.io/10.2478/zireb-2022-0013?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Naoki Ando & Nobuaki Endo, 2013. "Determinants of foreign subsidiary staffing by service firms," Management Research Review, Emerald Group Publishing Limited, vol. 36(6), pages 548-561, May.
    2. David Reeb & Mariko Sakakibara & Ishtiaq P Mahmood, 2012. "From the Editors: Endogeneity in international business research," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 43(3), pages 211-218, April.
    3. Gerald M. Meier, 2002. "Culture, Social Capital, and Management in a Developing Economy," Zagreb International Review of Economics and Business, Faculty of Economics and Business, University of Zagreb, vol. 5(1), pages 1-15, May.
    4. Lauring, Jakob & Selmer, Jan, 2018. "Person-environment fit and emotional control: Assigned expatriates vs. self-initiated expatriates," International Business Review, Elsevier, vol. 27(5), pages 982-992.
    5. Peter J Buckley, 2002. "Is the International Business Research Agenda Running Out of Steam?," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 33(2), pages 365-373, June.
    6. S. Kubra Canhilal & Rachel Gabel Shemueli & Simon Dolan, 2015. "Antecedent factors for success in international assignments: the case of expatriates in Peru," Journal of Global Mobility, Emerald Group Publishing Limited, vol. 3(4), pages 378-396, December.
    7. Phillip M Rosenzweig & Nitin Nohria, 1994. "Influences on Human Resource Management Practices in Multinational Corporations," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 25(2), pages 229-251, June.
    8. Yvonne McNulty, 2013. "Are Self-Initiated Expatriates Born or Made? Exploring the Relationship between SIE Orientation and Individual ROI," Palgrave Macmillan Books, in: Vlad Vaiman & Arno Haslberger (ed.), Talent Management of Self-Initiated Expatriates, chapter 3, pages 30-58, Palgrave Macmillan.
    9. Geert Hofstede, 1983. "The Cultural Relativity of Organizational Practices and Theories," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 14(2), pages 75-89, June.
    10. Yvonne McNulty & Jakob Lauring & Charlotte Jonasson & Jan Selmer, 2019. "Highway to Hell? Managing expatriates in crisis," Journal of Global Mobility, Emerald Group Publishing Limited, vol. 7(2), pages 157-180, July.
    11. Mitja Ruzzier & Bostjan Antoncic & Maja Konecnik, 2006. "The Resource-based Approach to the Internationalisation of SMEs: Differences in Resource Bundles between Internationalised and Non-Internationalised Companies," Zagreb International Review of Economics and Business, Faculty of Economics and Business, University of Zagreb, vol. 9(2), pages 95-116, November.
    12. Nakiye Boyacigiller, 1990. "The Role of Expatriates in the Management of Interdependence Complexity and Risk in Multinational Corporations," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 21(3), pages 357-381, September.
    13. Cascio, Wayne F. & Boudreau, John W., 2016. "The search for global competence: From international HR to talent management," Journal of World Business, Elsevier, vol. 51(1), pages 103-114.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ilgaz Arikan & Oded Shenkar, 2022. "Neglected elements: What we should cover more of in international business research," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 53(7), pages 1484-1507, September.
    2. Peltokorpi, Vesa, 2015. "Foreign subsidiary top manager nationality and language policy: The moderating effects of subsidiary age and size," International Business Review, Elsevier, vol. 24(5), pages 739-748.
    3. Rickley, Marketa & Karim, Samina, 2018. "Managing institutional distance: Examining how firm-specific advantages impact foreign subsidiary CEO staffing," Journal of World Business, Elsevier, vol. 53(5), pages 740-751.
    4. Pahlberg, Cecilia, 1995. "Cultural differences and problems in HQ-subsidiary relationships in MNCs," Working Papers 1995:2, Uppsala University, Department of Business Studies.
    5. Sjoerd Beugelsdijk, 2022. "Capitalizing on the uniqueness of international business: Towards a theory of place, space, and organization," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 53(9), pages 2050-2067, December.
    6. Belderbos René A. & Heijltjes Mariëlle G., 2003. "The Determinants Of Expatriation In Japanese Multinationals: Vertical Business Groups And Executive Staffing Policies In Asia," Research Memorandum 055, Maastricht University, Maastricht Research School of Economics of Technology and Organization (METEOR).
    7. Peng, George Z., 2012. "FDI legitimacy and MNC subsidiary control: From legitimation to competition," Journal of International Management, Elsevier, vol. 18(2), pages 115-131.
    8. Schotter, Andreas P.J. & Buchel, Olha & Vashchilko (Lukoianova), Tatiana, 2018. "Interactive visualization for research contextualization in international business," Journal of World Business, Elsevier, vol. 53(3), pages 356-372.
    9. Wilkinson, Timothy J. & Peng, George Z. & Brouthers, Lance Eliot & Beamish, Paul W., 2008. "The diminishing effect of cultural distance on subsidiary control," Journal of International Management, Elsevier, vol. 14(2), pages 93-107, June.
    10. Drogendijk, Rian & Martín Martín, Oscar, 2015. "Relevant dimensions and contextual weights of distance in international business decisions: Evidence from Spanish and Chinese outward FDI," International Business Review, Elsevier, vol. 24(1), pages 133-147.
    11. Li, Liang (Arthur) & Schotter, Andreas P.J. & Beamish, Paul W., 2024. "The origin and nationality of general manager successors in local-market-seeking MNE subsidiaries," International Business Review, Elsevier, vol. 33(3).
    12. Michael A. Sartor & Paul W. Beamish, 2020. "Integration-oriented strategies, host market corruption and the likelihood of foreign subsidiary exit from emerging markets," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 51(3), pages 414-431, April.
    13. Håkanson, Lars & Ambos, Björn, 2010. "The antecedents of psychic distance," Journal of International Management, Elsevier, vol. 16(3), pages 195-210, September.
    14. Xiao, Simon Shufeng & Jeong, Insik & Moon, Jon Jungbien & Chung, Chris Changwha & Chung, Jaiho, 2013. "Internationalization and Performance of Firms in China: Moderating Effects of Governance Structure and the Degree of Centralized Control," Journal of International Management, Elsevier, vol. 19(2), pages 118-137.
    15. Kraus, Sina A. & Blake, Benjamin D. & Festing, Marion & Shaffer, Margaret A., 2023. "Global employees and exogenous shocks: considering positive psychological capital as a personal resource in international human resource management," Journal of World Business, Elsevier, vol. 58(3).
    16. Chatzopoulou, Erifili-Christina & Dimitratos, Pavlos & Lioukas, Spyros, 2021. "Agency controls and subsidiary strategic initiatives: The mediating role of subsidiary autonomy," International Business Review, Elsevier, vol. 30(3).
    17. Yildiz, Harun Emre & Fey, Carl Felix, 2012. "The liability of foreignness reconsidered: New insights from the alternative research context of transforming economies," International Business Review, Elsevier, vol. 21(2), pages 269-280.
    18. Birgitte Grøgaard & Michael A. Sartor & Linda Rademaker, 2022. "What merits greater scholarly attention in international business?," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 53(7), pages 1508-1518, September.
    19. Chung, Chris Changwha & Beamish, Paul W., 2005. "Investment mode strategy and expatriate strategy during times of economic crisis," Journal of International Management, Elsevier, vol. 11(3), pages 331-355, September.
    20. Dan V. Caprar & Sunghoon Kim & Benjamin W. Walker & Paula Caligiuri, 2022. "Beyond “Doing as the Romans Do”: A review of research on countercultural business practices," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 53(7), pages 1449-1483, September.

    More about this item

    Keywords

    management of expatriates; national culture; multinational companies; subsidiaries; CEE countries;
    All these keywords.

    JEL classification:

    • M - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:vrs:zirebs:v:25:y:2022:i:2:p:19-38:n:1002. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Peter Golla (email available below). General contact details of provider: https://www.sciendo.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.