Korean Academic Society of Business Administration
[ Article ]
korean management review - Vol. 53, No. 3, pp.661-691
ISSN: 1226-1874 (Print)
Print publication date 30 Jun 2024
Received 28 Jan 2024 Revised 08 Mar 2024 Accepted 27 Mar 2024
DOI: https://doi.org/10.17287/kmr.2024.53.3.661

Managing Multiple Embeddedness and Expatriate Staffing Strategies: A Multilevel Investigation of Korean Multinationals

Jong Min Lee
(First Author) School of Business, Yonsei University j.m.lee@yonsei.ac.kr
다국적 기업의 해외 주재원 배치 전략에 대한 다층적 연구
이종민
(주저자) 연세대학교


Copyright 2024 THE KOREAN ACADEMIC SOCIETY OF BUSINESS ADMINISTRATION
This is an open access article distributed under the terms of the Creative Commons Attribution License 4.0, which permits unrestricted, distribution, and reproduction in any medium, provided the original work is properly cited.

Abstract

How do multinational enterprises (MNEs) organize their expatriate staffing strategies in response to varying degree of multiple embeddedness? This study investigates how MNEs configure a crucial managerial resource, i.e., expatriates, across a subsidiary portfolio embedded in diverse locations with differing scale and scope. I conduct a multilevel analysis using a dataset of 130 Korean MNEs and their 2,119 overseas subsidiaries operating 77 countries. The results show that MNEs with high multinationality and a strong home-region orientation utilize lower levels of expatriate staffing in their subsidiary portfolio, suggesting that MNEs adjust expatriate utilization based on the degrees of national and regional dispersion. In contrast to conventional wisdom, this study finds that the level of expatriate deployment has a U-curve relationship with subsidiary age. Drawing on resource dependence and organizational learning perspectives, this study reveals that MNEs utilize higher levels of expatriate staffing in their younger and older subsidiaries while maintaining lower expatriation levels in their adolescent subsidiaries. This suggests that MNEs seek to achieve differentiated fit with their multiple subsidiaries by utilizing expatriates, who play a crucial role as a regulating mechanism for headquarters and a knowledge conduit for MNEs, acting as boundary spanners.

Keywords:

multinational enterprises, multiple embeddedness, expatriate staffing strategies, multinationality, home-region orientation, subsidiary age, multilevel analysis

Acknowledgments

This research was supported by the Yonsei University Research Fund of 2023 (2023-22-0200) and Yonsei Business Research Institute.

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∙ The author Jong Min Lee is an Assistant Professor of International Business at the School of Business, Yonsei University (South Korea). Prior to his current role, he was an Associate Professor of International Business and Strategy at Henley Business School, University of Reading, UK, where he earned his Ph.D. His research interests intersect international business and global strategic management. He primarily focuses on the management of multinational firms, with special attention to subsidiary portfolio characteristics. His recent publications can be found in the Journal of International Business Studies, Journal of World Business, and Journal of Business Ethics, among others.