Expatriation and its effect on headquarters' attention in the multinational enterprise

• Autores: Yves Plourde, Simon C. Parker, Jean-Louis Schaan
• Localización: Strategic management journal, ISSN 0143-2095, Vol. 35, Nº 6, 2014, págs. 938-947
• Idioma: inglés
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• Resumen

  • We explore the circumstances under which expatriates can help their host-subsidiary capture headquarters' attention. Our central contention is that expatriates will be particularly helpful in situations where a subsidiary or its market is showing signs of growth, allowing headquarters to recognize information signaling opportunities for the firm that could otherwise go unnoticed. We test this contention using a robust instrumental variable approach in a single multinational enterprise. Our results show that subsidiaries hosting expatriates and experiencing growth at the subsidiary or market level have a higher probability of capturing headquarters' attention.