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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.