International assignments, human
capital resources and MNC
subsidiary performance in
CEE countries
Monica Zaharie
Faculty of Economics and Business Administration, Babes
,
-Bolyai University,
Cluj-Napoca, Romania
J ozsef Po or
Szent István University, Godollo, Hungary, and
Patricia Ratiu and Codruta Osoian
Faculty of Economics and Business Administration, Babes
,
-Bolyai University,
Cluj-Napoca, Romania
Abstract
Purpose – Multinational companies (MNCs) expect the highest return from their locally dispersed
units, and thus the factors that impact the success of the subsidiaries have been of great interest to the
literature. Building on the resource-based view, this paper aims to explore the effects of a set of
contextual resources, in particular, the international staffing (expatriate and inpatriate assignments)
and human capital resources on the performance of foreign-owned subsidiaries in Central and Eastern
European (CEE) countries
.
Design/methodology/approach – By means of a survey applied on 295 MNC subsidiaries from five
CEE countries (Hungary, Romania, Poland, Serbia and the Czech Republic), the paper reveals the main
relationships between contextual subsidiary level resources (the in-coming and out-going international
assignments, human capital resources at both employee and management level and the human resource
knowledge transfer) and the subsidiary performance.
Findings – This paper brings empirical support for the positive relationship between the MNCs’ contextual
resources, in particular, the inpatriate assignments, the human capital resources and the performance of
the locally dispersed subsidiaries. The findings show an interaction effect between the inpatriate and the
expatriate assignments on the performance of the subsidiaries. The empirical results bring an insight into the
understanding of the added value that the out-going inpatriate assignments and the human capital resources
have for the global businesses.
Research limitations/implications – This paper is empirical in nature and calls for
further exploration of the topic on larger random MNC samples. The findings of this paper have
the potential to improve how the management of the global businesses leverages the
inpatriate assignments and human capital resources, thus leading to more value-added to
stakeholders.
Originality/value – The originality of the paper stems from the implementation of the empirical survey in
the dynamic but under-researched context of the CEE region. Thus, the findings reveal valuable input about
the contribution of the human capital resources at the subsidiary level for the performance of the locally
dispersed MNC units in five European developing countries.
Keywords International assignments, MNCs’ subsidiary performance, CEE countries
Paper type Research paper
MNC
subsidiary
performance in
CEE countries
65
Received 31 August 2019
Revised 12 November 2019
Accepted 18 November 2019
Multinational Business Review
Vol. 28 No. 1, 2020
pp. 65-85
© Emerald Publishing Limited
1525-383X
DOI 10.1108/MBR-08-2019-0094
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