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Journal of International Business Studies

, Volume 40, Issue 8, pp 1359–1373 | Cite as

The antecedents and consequences of successful localization

  • Kenneth S LawEmail author
  • Lynda Jiwen Song
  • Chi-Sum Wong
  • Donghua Chen
Article

Abstract

Localization in the corporate setting is the extent to which expatriate managers are replaced by local employees originally held by expatriate managers. We sampled 229 multinational enterprises (MNEs) in the People's Republic of China and investigated the antecedents of localization success based on resource dependency theory. We developed a 40-item scale to measure human resource (HR) practices determined to contribute to successful localization. We also identified parent company support and top management's commitment as two sets of factors that predicted localization success. It was the first study that found a significant relationship between localization success and top management ratings of company performance.

Keywords

human resource management performance resource dependency localization success 

Notes

Acknowledgements

Data collection for this project is supported by a grant from the Research Grants Council of the Hong Kong Special Administrative Region (project no. HKUST6219/00H) and NSFC no. 70602001.

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Copyright information

© Academy of International Business 2009

Authors and Affiliations

  • Kenneth S Law
    • 1
    Email author
  • Lynda Jiwen Song
    • 2
  • Chi-Sum Wong
    • 1
  • Donghua Chen
    • 3
  1. 1.Department of ManagementThe Chinese University of Hong KongShatinHong Kong
  2. 2.Business School, Renmin University of ChinaBeijingPR China
  3. 3.Institute of Accounting and Finance, School of Business, Nanjing UniversityNanjingPR China

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