Executive Staffing Practice Patterns in Foreign MNC Affiliates Based in Japan

Abstract

Our empirical study provides insights into executive staffing practice patterns in foreign MNC affiliates based in Japan. Using a sample of 3,241 foreign companies, our results show that affiliate size and high ownership ratio are associated with larger numbers of parent-country nationals (PCNs) in top management and board positions. However, contrary to research in other countries, affiliate age was not related to the likelihood of sending PCNs. Two cultural variables relating to parent countries, Uncertainty Avoidance and Power Distance, were found to be associated with the likelihood of multinationals sending PCNs to executive positions at their affiliates. Furthermore, Japan's two major centres (Kanto and Kansai) have more PCN top managers and PCN board members than other parts of the country. Finally, we found Asian countries to be most likely to send PCNs as top managers or board members, and English-speaking countries the least, with European countries in between.