Publication details

Expatriate control in MNE subsidiaries – a CEE country as an example



Year of publication 2015
Type Article in Proceedings
Conference 3rd Proceedings of the International Conference on Management, Leadership and Governance ICMLG 2015
MU Faculty or unit

Faculty of Economics and Administration

Field Management and administrative
Keywords expatriate control corporate governance subsidiary corporations Central Europe
Description Staffing key positions in subsidiary management with expatriates is a common way for multinational enterprises (MNEs) to exercise control over their subsidiaries. The use of this indirect mechanism is to a certain extent idiosyncratic, since it influences subsidiary management to a large degree through corporate governance. Expatriate control is influenced not only by headquarters, its nature, capabilities and experience, but also by the specifics of the target country and the subsidiary. This contribution explores the use of expatriate control in MNE subsidiaries in the Czech Republic, a CEE country. The geographical location of the Czech Republic makes it highly valued as a market for a number of MNEs, facilitating expansion farther east. The present analysis addresses a sample of 330 subsidiaries of MNEs from outside the Czech Republic. Primary data were collected through an electronic questionnaire. By means of descriptive statistics, it seeks to identify variables that influence the MNC decision to use/not use the expatriate control in a subsidiary. Furthermore, it tries to uncover differences between MNCs from different countries. The results indicated positive relationship between subsidiary size and expatriate control. Moreover, predominant use of expatriate control was indicated in Japanese, French, Spanish and Italian subsidiaries.

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