A model of multinational enterprise subsidiary staffing composition

Abstract

A large proportion of the multinational enterprise (MNE) literature focuses on parent country national (PCN) expatriates. The high costs of managing and supporting PCNs on foreign assignments, however, have made these assignments less attractive for MNEs and, as a result, MNEs are more actively exploring ways to effectively utilize third country nationals (TCNs) and host country nationals (HCNs), as well as PCNs to satisfy international subsidiary staffing needs. Grounded in the person–environment (P–E) fit theory, we delineate three environmental dimensions (strategic, national and organizational) to offer some propositions that may serve to guide this exploration. These propositions are based on an integrative model that examines the MNE subsidiary staffing composition under different combinations of strategic, national and organizational dimensions. We conclude with suggestions for future research.

Keywords:

• International assignments
• IHRM
• recruitment and selection
• MNE strategy and staffing practices

Additional information

Notes on contributors

Randall Schuler

Randall Schuler is at Rutgers University and GSBA Zurich. Yaping Gong is at Hong Kong University of Science and Technology