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Environmental Multi‐dimensionality and Staff Localization in Multinational Enterprises: The Case of Korean Firms
Author(s) -
Baik Youjin,
Kim Hyojin,
Park YoungRyeol
Publication year - 2021
Publication title -
canadian journal of administrative sciences / revue canadienne des sciences de l'administration
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.347
H-Index - 48
eISSN - 1936-4490
pISSN - 0825-0383
DOI - 10.1002/cjas.1584
Subject(s) - multinational corporation , business , staffing , diversification (marketing strategy) , industrial organization , congruence (geometry) , subsidiary , upper echelons , economic geography , knowledge management , marketing , strategic management , management , economics , psychology , social psychology , computer science , finance
The person–environment fit theory posits that the term “environment” can be defined at different levels. This study delineates two environmental dimensions (strategic and organizational) and empirically examines the potential moderating effects of two strategic factors (intra‐ and inter‐regional diversification) on the relationship between two organizational factors (subsidiary ownership and host‐country experience) and MNE subsidiary staffing composition. The results indicate that strategic and organizational dimensions have impacts on subsidiary staffing composition. This study also finds that the interaction effects between strategic and organizational factors are significant only when there is congruence between demands from different environmental dimensions.