Drawing from the resource-based view, we propose that management localization serves as a mean to acquire local managerial resources for multinationals and that its effect on subsidiary performance depends on several key contextual variables. Based on a survey of foreign invested enterprises in China, we find that the degree of management localization alone does not improve subsidiary performance, while local resource dependency, headquarters support, and participation by local managers significantly moderate the effect of management localization on subsidiary performance. The findings have meaningful implications for human resource management at subsidiaries of multinationals in overseas markets.
|Title of host publication||Flexibility, innovation, and adding value as drivers of global competitiveness : private and public sector challenges : proceedings of the Twenty-second Annual World Business Congress, June 25-29, 2013, National Taipei University, Taipei, Taiwan.|
|Publisher||International Management Development Association|
|Number of pages||8|
|Publication status||Published - 1 Jan 2013|
Bibliographical notePaper presented at the 22nd Annual World Business Congress, Jun 25-29, 2013, National Taipei University, Taipei, Taiwan.
ISBN of the source publication: 9781888624120