Human resource management and early internationalization: is there a leap-frogging in international staffing?

Abstract

The present study focuses on the international staffing of early internationalizers by linking the Ethnocentric, Polycentric, Regiocentric, and Geocentric (EPRG) concept with the Process Theories of Internationalization. On a dataset of 116 (N) German medium-sized companies, we test whether the determinants which allow firms to internationalize shortly after their inception, namely prior international experience, technological intensity, and networks, influence the firms' international staffing. We further elaborate whether this influence differs between early and late internationalizers. The empirical results show that prior international experience is not associated with the firms' international staffing at all, and thus, does not allow conclusions. Technological intensity increases the probability of the choice of an ethnocentric staffing policy, especially for early internationalizers. In contrast, networks enable firms, especially early internationalizers, to pursue regiocentric or geocentric staffing policies.

Keywords:

• early internationalizers
• EPRG concept
• intensity of technology
• international experience
• international staffing
• networks

Notes

1. To test whether low values of the EPRG concept, which are a consequence of high technological intensity, lead to an ethnocentric staffing policy we calculated a multinomial logistic regression. These confirm the arguments that deployment of PCNs is utilized for protection of unwanted diffusion of technology. Technological intensity is positively significant for ethnocentric strategies in multinomial models, but not for polycentric staffing strategies.