Societal trust, formal institutions, and foreign subsidiary staffing

• 成果类型: Article
• 署名作者: Gaur, Ajai; Pattnaik, Chinmay; Singh, Deeksha; Lee, Jeoung Yul
• 署名单位: Rutgers University System; Rutgers University New Brunswick; Rutgers University Newark; University of Sydney; Rutgers University System; Rutgers University Camden; Hongik University
• 刊物名称: JOURNAL OF INTERNATIONAL BUSINESS STUDIES
• ISSN/ISSBN: 0047-2506
• DOI: 10.1057/s41267-021-00498-z
• 发表日期: 2022
• 页码: 1045-1061
• 关键词: formal institutions; Informal institutions; societal trust; subsidiary staffing; subsidiary interdependence; host-country experience

摘要

This study examines the interactive effects of host-country societal trust and formal institutions on foreign subsidiary staffing strategies. Based on the conceptualization of institutions in new institutional economics, we demonstrate that high societal trust and strong formal institutions that support market-based exchange jointly reduce the incidence of expatriate staffing in foreign subsidiaries. We identify two contingency factors - subsidiary interdependence and host-country experience - that affect this relationship. Our finding suggests that the level of interdependence among subsidiaries within the MNE network and the host-country experience of the subsidiaries negatively moderate the interactive effect of formal and informal institutions on expatriate staffing. We test our hypotheses based on longitudinal data of 6675 foreign subsidiaries of 435 Korean MNEs in 42 countries between 1990 and 2014.