Managers’ international experiences, their advice networks, and performance in MNEs

Abstract

To perform effectively in the context of MNE subsidiaries, subsidiary managers build and use ‘dual advice networks’, to access both HQ and local sources of knowledge. Through their international encounters, managers may build useful internal and external networks. However, despite potential performance benefits of subsidiary managers’ international experiences in multinational enterprises (MNEs), relatively little is known about the exact types of international experiences and underlying mechanisms that may contribute to subsidiary-unit performance. In this context, this thesis aims to explore international experience and subsidiary performance relationship in MNEs that remains a relatively under-developed topic in the fields of International HRM (IHRM), taking particular account of the mediating effect of their dual advice networks - combined networks allowing them to access both HQ and local sources of knowledge and resources. Using a survey of 284 managers in South Korean MNEs, I find that when a subsidiary-unit manager has more international experiences in both the MNE’s home and host country, they are more connected and contact more frequently, and gain more useful information or knowledge with dual advice networks in both HQ and the host country. In addition, I find that when a subsidiary unit manager has more international iii experiences - in terms of the extent and duration - in both the MNE’s home and host country, the subsidiary unit shows better performance, due to the size of the manager’s dual advice networks across HQ and local parties. This thesis contributes to the IHRM literature in novel ways. First, this thesis proposes international experience as an underlying dimension to capture emerging staffing options. Second, this thesis identifies international experience as an antecedent of social/ advice networks. Third, this thesis focuses on a subsidiary manager’s advice network as a missing piece to research on international experience and subsidiary performance by finding international experiences matter for advice networks and subsidiary-unit performance by providing empirical evidence.