A multilevel model of expatriate staffing and subsidiary financial performance: An expanded fit perspective

Abstract

We apply the fit theory to develop a multilevel framework of expatriate staffing effectiveness and argue that the advantages of utilizing expatriate managers are more salient in subsidiaries with market-seeking mandates in the host country. This effect is stronger if the parent firm places more emphasis on value appropriation than value creation. Such an impact is further moderated by the economic development of the host country, a country-level facilitating condition affecting the adaptability and value creation of the expatriates. The results based on a multilevel analysis of a panel dataset of foreign subsidiaries of South Korean global enterprises from 2006 to 2013 support our predictions.