A company hires pcns when the foreign culture is distant. which determinant applies?

41 Pages Posted: 29 Jan 2019

Inhaltsverzeichnis Show

Deeksha A. Singh
Chinmay Pattnaik
Jeoung Yul Lee
Share this document
Did you find this document useful?
Chapter 1 - Multiple Choice Questions
Reward Your Curiosity
What type of expatriate is a MNC most likely to have if it is starting to go international after many years of domestic market bliss?
Which are the two main motivators for accepting an international assignment?
Which stage of international operations tends to create a separate international division in a company?
What activity in international HR would not be required in a domestic environment?

Deeksha A. Singh

Rutgers Business School - Camden; National University of Singapore (NUS)

Chinmay Pattnaik

The University of Sydney - Discipline of International Business

Jeoung Yul Lee

Hongik University - School of Business

Ajai Gaur

Rutgers Business School - Newark and New Brunswick

Date Written: January 17, 2019

Abstract

Drawing from the notion of cultural friction and based on the agency theory rationalization of multinational enterprise (MNE) headquarter–subsidiary relationship, we examine the impact of cultural friction in foreign subsidiaries on subsidiary performance. We argue that cultural friction, arising due to a high presence of parent country nationals (PCNs) in culturally distant locations, has a detrimental effect on subsidiary performance. This effect is strongest when the cultural friction is at the top management team (TMT) level and weakest when friction is at the regular employee level. This relationship, however, is contingent on factors that work as drags or lubricants for cultural friction between PCNs and host country nationals (HCNs). We identify governance mode and language differences between home and host countries as drag parameters and host country experience and subsidiary interdependence as lubricants that condition the effect of cultural friction on subsidiary performance. Empirical findings based on a longitudinal sample of 7,495 foreign subsidiary observations of 467 Korean MNEs in 63 countries during 1990–2014 provide robust support for our theoretical predictions.

Suggested Citation: Suggested Citation

Singh, Deeksha A. and Pattnaik, Chinmay and Lee, Jeoung Yul and Gaur, Ajai S., Subsidiary Staffing, Cultural Friction, and Subsidiary Performance: Evidence from Korean Subsidiaries in 63 Countries (January 17, 2019). Available at SSRN: https://ssrn.com/abstract=3317573 or http://dx.doi.org/10.2139/ssrn.3317573

0% found this document useful (0 votes)

3K views

23 pages

Copyright

Did you find this document useful?

0% found this document useful (0 votes)

3K views23 pages

Chapter 1 - Multiple Choice Questions

Jump to Page

You are on page 1of 23

You're Reading a Free Preview
Pages 6 to 9 are not shown in this preview.

You're Reading a Free Preview
Pages 13 to 21 are not shown in this preview.

Reward Your Curiosity

Everything you want to read.

Anytime. Anywhere. Any device.

No Commitment. Cancel anytime.

Which of these moderators may prove to be the greater barrier to mobility for female

expatriates?

Dual Career Issues

Which of these is a direct cost of expatriate failure?

Relocation expenses

Expatriates that assist in the transfer of shared values and beliefs are

Agents of socialising

Expatriates that work as spiders developing their web of personal relationships as they move

between various organizational units

According to the Brookfield Study (2015), what is the single most factor in retaining

employees after an international assignment?

Career and talent management before, during and after the assignment

Which of the following is NOT a factor in expatriate selection?

All of the above

_______ focuses capabilities to grasp, reason, and behave effectively in culturally diverse

situations.

Cultural intelligence

_______ is the ability to appreciate elements of various cultures.

Global Mindset

Culture-specific knowledge is

Cognitive layer

Q10

In this approach to staffing, employees may move out of their home countries, but only

within a particular geographic region.

Regiocentric

What type of expatriate is a MNC most likely to have if it is starting to go international after many years of domestic market bliss?

3. What type of expatriate is a MNE most likely to have if it is starting to go international after many years of domestic market bliss? a) PCN b) HCN c) TCN d) not enough information (a) PCN, because a PCN carries less risk as far as already knowing the company culture and expectations.

Which are the two main motivators for accepting an international assignment?

The challenges (both personal and professional) and career prospects were the two main motives for accepting an international assignment. ...

Which stage of international operations tends to create a separate international division in a company?

During the international division phase, creation of a separate division in which international activities are grouped is already taking place. The international division resembles the operation and activities of the domestic organization. Subsidiary managers report to head of international division.

What activity in international HR would not be required in a domestic environment?

To operate in an international environment, a human resources department must engage in a number of activities that would not be necessary in a domestic environment: international taxation; international relocation and orientation; administrative services for expatriates; host-government relations; and language ...