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Sangeetha Lakshman (Department of Management, School of Economics and Management, Tongji University, Shanghai, China) C. Lakshman (University of Texas Rio Grande Valley, Brownsville, Texas, USA) Christophe Estay (Department of Management, Kedge Business School, Bordeaux, France) The purpose of this paper is to examine the relationship of business strategies with executive staffing of multinational companies (MNCs). Design/methodology/approachBased on in-depth interviews conducted with top executives of 22 MNCs’, the authors identify important connections between international business strategies and staffing orientation. The authors used the qualitative research approach of building theory from interviews; thus, creating theoretical propositions from empirical evidence. FindingsThe authors find that when the pressure for global integration is high, MNCs use more parent-country national (PCNs) (ethnocentric staffing) as against the use of host-country managers (HCNs) (polycentric staffing) when this pressure is low. Additionally, MNCs using a global strategy are more likely to use an ethnocentric staffing approach, those using a multi-domestic strategy use a polycentric approach and firms using transnational strategy adopt a mix of ethnocentric and polycentric approaches. Research limitations/implicationsAlthough the authors derive theoretical patterns based on rich qualitative data, their sample is relatively small and comprises mostly of French MNCs. Generalizability to a broader context is limited. However, the authors’ findings have critical implications for future research. Practical implicationsThe authors’ findings provide critical managerial implications for MNCs in matching their HR strategies with business strategies. These are important for effective strategy implementation. Originality/valueAlthough MNC staffing orientations have been studied for a long time, their relationship to international business strategies is still not clearly understood. The authors contribute to the literature by investigating the relationship between MNCs’ business strategy types with staffing orientations. Keywords
CitationLakshman, S., Lakshman, C. and Estay, C. (2017), "The relationship between MNCs’ strategies and executive staffing", International Journal of Organizational Analysis, Vol. 25 No. 2, pp. 233-250. https://doi.org/10.1108/IJOA-10-2015-0913 Publisher:Emerald Publishing Limited Copyright © 2017, Emerald Publishing Limited Related articles45.What is the difference between an ethnocentric and a polycentric staffing approach?A.An ethnocentric staffing approach alleviates cultural myopia, while a polycentric staffing approachcan lead to cultural myopia.B.An ethnocentric staffing approach is more expensive compared to a polycentric staffing approach.C.An ethnocentric staffing approach seeks host-country nationals for all key positions, while apolycentric staffing approach seeks the best people for key jobs regardless of nationality.D.An ethnocentric staffing approach is now used in most international businesses, while thepolycentric staffing approach is on the wane.A polycentric approach may be less expensive to implement, reducing the costs of value creation.Expatriate managers can be expensive to maintain. AACSB: AnalyticBlooms: UnderstandDifficulty: 2 MediumHill - Chapter 19 #45Learning Objective: 19-02 Identify the pros and cons of different approaches to staffing policy in international business firms.Topic: Staffing Policy46.If a company recruits host-country nationals to manage subsidiaries while parent-country nationalsoccupy key positions at corporate headquarters, the firm is following a(n): Get answer to your question and much more AACSB: AnalyticBlooms: RememberDifficulty: 1 EasyHill - Chapter 19 #46Learning Objective: 19-02 Identify the pros and cons of different approaches to staffing policy in international business firms.Topic: Staffing Policy What is a polycentric staffing approach?'Polycentric staffing' is an organizational structure wherein foreign subsidiaries are locally managed by host-country nationals while corporate positions are likewise filled with home-country nationals.
What is ethnocentric approach to staffing?The ethnocentric approach to recruitment means that we hire people from our parent country to fill positions all over the world. For example, if we want to fill an executive role in a foreign country, we could: Relocate one of our existing employees who's a permanent resident of our parent country.
What is the difference between polycentric and geocentric?Polycentric Attitude: Polycentric attitude refers to the belief that the best approach of work and practices of business are known by the employees of the host country. Geocentric Attitude: Geocentric attitude refers to a global view that emphasizes the usage of the best approach and people from around the world.
What is the difference between polycentric and Regiocentric?Polycentric staffing focuses on using local employees to staff a company's foreign subsidiaries, which helps the company get a handle on local conditions and also shows a commitment to the host country. Regiocentric staffing groups foreign subsidiaries by region.
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