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

Plourde Yves | Zendy; Parker Simon C. | Zendy; Schaan JeanLouis | Zendy

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

Author(s) -

Plourde Yves,

Parker Simon C.,

Schaan JeanLouis

Publication year - 2014

Publication title -

strategic management journal

Language(s) - English

Resource type - Journals

SCImago Journal Rank - 11.035

H-Index - 286

eISSN - 1097-0266

pISSN - 0143-2095

DOI - 10.1002/smj.2125

Subject(s) - multinational corporation , subsidiary , business , industrial organization , test (biology) , variable (mathematics) , marketing , finance , paleontology , mathematical analysis , mathematics , biology

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 . Copyright © 2013 John Wiley & Sons, Ltd.

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