Universität zu Köln

Tenzer, Helene, Schulz, Matthias ORCID: 0000-0002-2391-8442, Klier, Hendrik and Schwens, Christian ORCID: 0000-0002-4576-5520 (2020). Sending expats or hiring locals? The impact of communication barriers on foreign subsidiary CEO staffing. European journal of international management EJIM, 14 (5). 891 - 924. GENEVA: INDERSCIENCE ENTERPRISES LTD. ISSN 1751-6765

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Abstract

Communication between headquarters (HQs) and foreign subsidiaries of multinational corporations (MNCs) is crucial for coordination, control, and knowledge transfer, but language barriers and geographic distance impede this exchange. Hypothesising that MNCs react to these hurdles by appointing subsidiary top managers with adequate communication skills, we investigate how the native language barrier, foreign language barrier, and geographic distance between HQs and a foreign subsidiary influence the choice between parent and host/third country nationals as subsidiary CEOs. Testing our hypotheses on a sample of 101 staffing decisions made by German firms in 33 countries, we find a negligible effect of the native language barrier, but establish that a foreign language barrier enhances and higher geographic distance lowers firms' propensity to staff subsidiary CEO positions with parent country nationals. An MNC's international experience was found to moderate these relationships.

Item Type:	Journal Article
Creators:	Creators Email ORCID ORCID Put Code Tenzer, Helene UNSPECIFIED UNSPECIFIED UNSPECIFIED Schulz, Matthias UNSPECIFIED orcid.org/0000-0002-2391-8442 UNSPECIFIED Klier, Hendrik UNSPECIFIED UNSPECIFIED UNSPECIFIED Schwens, Christian UNSPECIFIED orcid.org/0000-0002-4576-5520 UNSPECIFIED
URN:	urn:nbn:de:hbz:38-349943
DOI:	10.1504/EJIM.2020.109819
Journal or Publication Title:	European journal of international management EJIM
Volume:	14
Number:	5
Page Range:	891 - 924
Date:	2020
Publisher:	INDERSCIENCE ENTERPRISES LTD
Place of Publication:	GENEVA
ISSN:	1751-6765
Language:	English
Faculty:	Faculty of Management, Economy and Social Sciences
Divisions:	Faculty of Management, Economics and Social Sciences > Business Administration > Corporate Development > Professur für Innovation Management and Entrepreneurship
Subjects:	Management and auxiliary services
Uncontrolled Keywords:	Keywords Language DISTANCE STILL MATTER; INTERNATIONAL-BUSINESS; KNOWLEDGE TRANSFER; HOST COUNTRY; MULTINATIONAL-CORPORATIONS; LINGUA FRANCA; MANAGEMENT-PRACTICES; ENTRY MODE; LANGUAGE; ENGLISH English Management English
Refereed:	Yes
URI:	http://kups.ub.uni-koeln.de/id/eprint/34994