Müllner, Jakob, Klopf, Patricia, Nell, Phillip C. 2017. Trojan Horses or Local Allies: Host-country National Managers in Developing Market Subsidiaries. Journal of International Management ,


BibTeX

@ARTICLE{Müllner2017,
title = {Trojan Horses or Local Allies: Host-country National Managers in Developing Market Subsidiaries},
author = {Jakob Müllner and Patricia Klopf and Phillip C. Nell},
year = {2017},
doi = {http://dx.doi.org/10.1016/j.intman.2016.12.001},
url = {http://www.sciencedirect.com/science/article/pii/S1075425316302204},
language = {EN},
journal = {Journal of International Management},
abstract = {We investigate a multinational corporation's (MNC) decision to appoint host-country national (HCN) managers to foreign subsidiaries based on the institutional context of and familiarity with the host country. HCN managers are commonly associated with specialized knowledge, superior responsiveness, and higher legitimacy. Yet, we argue that local familiarity of HCNs can also be perceived as risky or harmful by MNC parents. We analyze how formal and informal institutions affect the trade-off between positive effects and potential costs associated with HCN managers (“Local allies” vs. “Trojan horses”). We find that legal institutions protect foreign MNCs from potential costs, encourage the use of HCNs and reinforce their benefits. Corruption and corruption distance, however, increase perceived costs associated with HCN managers up to a point at which they outweigh their perceived benefits.},
}

Abstract

We investigate a multinational corporation's (MNC) decision to appoint host-country national (HCN) managers to foreign subsidiaries based on the institutional context of and familiarity with the host country. HCN managers are commonly associated with specialized knowledge, superior responsiveness, and higher legitimacy. Yet, we argue that local familiarity of HCNs can also be perceived as risky or harmful by MNC parents. We analyze how formal and informal institutions affect the trade-off between positive effects and potential costs associated with HCN managers (“Local allies” vs. “Trojan horses”). We find that legal institutions protect foreign MNCs from potential costs, encourage the use of HCNs and reinforce their benefits. Corruption and corruption distance, however, increase perceived costs associated with HCN managers up to a point at which they outweigh their perceived benefits.

Publication's profile

Status of publication Published
Affiliation WU
Type of publication Journal article
Journal Journal of International Management
Citation Index SSCI
WU Journalrating 2009 A
WU-Journal-Rating new STRAT-B, WH-B
Language English
Title Trojan Horses or Local Allies: Host-country National Managers in Developing Market Subsidiaries
Year 2017
Reviewed? Y
URL http://www.sciencedirect.com/science/article/pii/S1075425316302204
DOI http://dx.doi.org/10.1016/j.intman.2016.12.001

Associations

People
Müllner, Jakob (Details)
Klopf, Patricia (Details)
Nell, Phillip C. (Details)
Organization
Global Business and Trade DP (Details)
International Business (Nell) (Details)
Research areas (ÖSTAT Classification 'Statistik Austria')
5300 Economics (Details)
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