2013 Fiscal Year Final Research Report
Localization and Performance of Foreign Subsidiaries
| Project/Area Number |
23730367
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| Research Category |
Grant-in-Aid for Young Scientists (B)
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| Allocation Type | Multi-year Fund |
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| Research Field |
Business administration
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| Research Institution | Shibaura Institute of Technology |
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Principal Investigator |
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| Project Period (FY) |
2011 – 2013
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| Keywords | 現地化 / 中国 / 人材配置 / 現地法人 / 生存率 |
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| Research Abstract |
In this study, we reviewed previous research on staff deployment at foreign subsidiaries and gathered qualitative information through interviews with managers of MNCs. Then, focusing on the foreign subsidiaries of Japanese MNCs in China, the relationship between the expatriation/localization and the survival of the foreign subsidiaries was analyzed. Our results of the analysis based on the sample of 383 subsidiaries of Japanese MNCs in China showed that the effect of staff localization on the survival of a foreign subsidiary varied with the staff position and the business purpose of a subsidiary. Specifically, while there was no relationship between the top management localization and the subsidiary survival, the employee localization affected positively on the survival of manufacturing subsidiaries and negatively on the survival of the other subsidiaries. Those results imply that selective use of the staff localization is important for multinational companies.
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