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Emerging Giants, Aspiring Multinationals, and Foreign Executives: Leapfrogging, Capability Building, and Competing with Developed Country Multinationals

Author

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  • Frithjof Arp

    (Monash University [Australia])

Abstract

The phenomenon of emerging market organizations appointing foreign executives from distant cultural contexts to headquarter positions has stirred public and academic interest. Emerging giants, aspiring multinationals, and even local organizations that focus entirely on domestic markets have joined the global hunt for management talent. This article reports why foreign executives from significant cultural distance are appointed to local headquarter positions, what they contribute, and why these positions are not filled with local executives. Data is sourced from in-depth interviews with two sample groups in organizations founded and headquartered in Malaysia (46 foreign executives from 13 countries and 25 host-country peers from three local ethno-cultural groups). Triangulation of dyadic data from these two sample groups reveals a dichotomy between the initial reasons for which foreign executives are appointed and the continued reasons why some of these executives remain in their positions.

Suggested Citation

  • Frithjof Arp, 2014. "Emerging Giants, Aspiring Multinationals, and Foreign Executives: Leapfrogging, Capability Building, and Competing with Developed Country Multinationals," Post-Print hal-02096127, HAL.
    • Handle: RePEc:hal:journl:hal-02096127
    DOI: 10.1002/hrm.21610
    as

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    Cited by:

    1. Chenxi Zhou & Kent Ngan-Cheung Hui & Kevin Zheng Zhou & Yuanyuan Gong, 2023. "Is failure the mother of success? Prior failure experience and cross-border M&A completion by emerging market firms," Asia Pacific Journal of Management, Springer, vol. 40(2), pages 775-813, June.
    2. Estrin, Saul & Meyer, Klaus E. & Pelletier, Adeline, 2018. "Emerging Economy MNEs: How does home country munificence matter?," Journal of World Business, Elsevier, vol. 53(4), pages 514-528.
    3. Alvarado-Vargas, Marcelo J. & Hermans, Michel & Newburry, William, 2020. "What’s in it for me? Local employees’ anticipated career opportunities derived from firm internationalization," Journal of Business Research, Elsevier, vol. 117(C), pages 201-211.

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