Abstract
In the literature, several initial endeavors to empirically examine staff-localization models have been described; however, the factors influencing staff localization have focused mostly on human resource management (HRM)-related issues. This study opens a promising new direction for research on localization by contending that the important elements affecting staff localization are not limited to HRM practices only. We analyzed this phenomenon from the perspectives of both organizational factors (firm size and subsidiary operation time) and strategic choice (location and local-market focus). For Taiwanese multinational corporation (MNC) subsidiaries in China, subsidiary size has a positive impact on staff localization. However, subsidiary operation time is not an important factor. The moderating role of subsidiary operation time on the size-staff localization link is not strong. In addition, MNC subsidiaries located in coastal provinces are inclined to hire more local managers. The relationship between local-market focus and staff localization will be U-shaped and curvilinear.
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