| Multinational enterprises (MNEs) can staff overseas subsidiaries with parent country nationals (PCNs), host country nationals (HCNs), third country nationals (TCNs), or any mix of the three, defined as subsidiary staffing modes. The choice of staffing modes leads to a staffing composition, defined as the distribution of PCNs, HCNs, and TCNs in subsidiaries of MNEs. The first essay of this dissertation classifies the environmental antecedents of staffing modes into national, strategic, organizational, and job dimensions. It develops propositions regarding the impact of fit at each dimension on the choice of staffing modes. It also proposes a four-dimension model of fit assessment, and discusses its implications for individual and organizational performance in the context of subsidiaries of MNEs.; The first essay presents two empirical tests of the impact of cultural distance on the utilization of PCNs. In a survey study, I found that cultural distance had a positive and significant impact on the utilization PCNs at the employee level. In another study using archival data, I found that cultural distance had a positive impact on the utilization of PCNs at the CEO, top management, and employee levels. However, as years of operation increased, the positive effect decreased.; The second essay proposes a process model in which staffing composition influences affective, behavioral, cognitive, and strategic outcomes at the subsidiary level which in turn affect subsidiary performance. It also discusses the role of time in the relationships between staffing composition and subsidiary outcomes. The second essay provides two empirical tests of the relationship between staffing composition and subsidiary performance. The survey study results revealed that heterogeneity of staffing composition at the employee level had a negative impact on subsidiary return on asset. The archival study results revealed that staffing composition at both employee and top management levels had a negative impact on subsidiary labor productivity. Years of operation moderated the relationship such that the longer the operation, the less likely that a heterogeneous staffing composition decreased subsidiary labor productivity. |
