Swimming Against the Tide: Outward Staffing Flows from Multinational Subsidiaries

Abstract

Empirical studies on expatriation have overwhelming focused on flows of parent country nationals of multinational enterprises (MNEs) to staff subsidiary operations, often presented as an alternatives to host country counterparts. Conversely, the study of flows of subsidiary employees to other subsidiaries, as third country nationals, and to the headquarters, as inpatriates, has, empirically much less pedigree. Drawing on a large scale study of MNEs in Ireland, this paper charts outward international flows of subsidiary employees. The findings indicate that approximately half of MNEs studied had some form of outward staffing flow. Although the significance levels varied between inpatriates and third country nationals, two-way integration of the subsidiary in the MNE network, a tradition of expatriate flows within the MNE and method of establishment emerged as strong indicators of outward flows.