Abstract
Whereas the use of host‐country nationals (HCNs) is increasing in international business today, research has predominantly focused on parent‐country nationals (PCNs). We address this gap by identifying factors that help multinationals (MNCs) make executive staffing decisions between PCNs and HCNs in Asia. We use French MNCs to investigate this question. We adopted a qualitative method by conducting interviews with 30 executives of French subsidiaries located in Singapore and China. Our findings revealed that most French MNCs use significant numbers of PCNs for key positions. Specifically, we found that size of operations in the subsidiary, mode of entry, knowledge transfer, and talent development requirements are key determinants of the choice between PCNs and HCNs for French MNCs.
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