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. 23 (3), 306-325.
BibTeX
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.
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Status of publication | Published |
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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 |
Volume | 23 |
Number | 3 |
Year | 2017 |
Page from | 306 |
Page to | 325 |
Reviewed? | Y |
URL | http://www.sciencedirect.com/science/article/pii/S1075425316302204 |
DOI | http://dx.doi.org/10.1016/j.intman.2016.12.001 |
Open Access | Y |
Associations
- People
- Müllner, Jakob (Details)
- Klopf, Patricia (Former researcher)
- Nell, Phillip C. (Details)
- Organization
- Department of Global Business and Trade DP (Details)
- Institute for International Business IN (Details)
- Institute for International Business (Nell) (Details)
- Research areas (ÖSTAT Classification 'Statistik Austria')
- 5300 Economics (Details)