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Asia Pacific Journal of Management

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01.12.2010

Staff localization and environmental uncertainty on firm performance in China

verfasst von: Simon S. K. Lam, Joseph C. K. Yeung

Erschienen in: Asia Pacific Journal of Management | Ausgabe 4/2010

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Abstract

This paper examined the form of the localization–performance relationship as moderated by environmental uncertainty. We postulated that the positive impact of staff localization on firm performance only continues to a certain point. Beyond this point, the costs of a high degree of staff localization outweigh the benefits. The negative effect of an increase in localization beyond an optimal point is expected to be stronger under the condition of high environmental uncertainty. Both the curvilinear relationship and the moderating effect of environmental uncertainty are confirmed through the survey results of 111 MNC subsidiaries operating in China. The result suggests that MNCs should pay particular attention to balance their deployment of local staff and expatriates in their international expansion.

Vorheriger Artikel Institutional environment and complementary assets: Business strategy in China’s 3G development

Nächster Artikel To teach or to compete? A strategic dilemma of knowledge owners in international alliances

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Titel: Staff localization and environmental uncertainty on firm performance in China
verfasst von: Simon S. K. Lam
Joseph C. K. Yeung
Publikationsdatum: 01.12.2010
Verlag: Springer US
Erschienen in: Asia Pacific Journal of Management / Ausgabe 4/2010
Print ISSN: 0217-4561
Elektronische ISSN: 1572-9958
DOI: https://doi.org/10.1007/s10490-008-9123-2

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