Skip to main content
SpringerLink
Log in

Implementing Internationalization Strategy: The People Question

  • Chapter
  • First Online:
The Art of Going Global

  • 1931 Accesses

Abstract

An internationalization strategy is implemented by people—domestic, expatriate, and local managers and employees working from headquarters or subsidiaries. The first people management decision is staffing. Firms decide to use expatriate managers in key positions at subsidiaries to ensure rigorous implementation of decisions made at headquarters and in case local talent are unavailable. Expatriates build personal networks and create effective links between headquarters and subsidiaries, but firms need to be aware of potential conflicts, which may arise from disparity in compensation between local and expatriate managers, from the challenge of selecting expatriates with the right skill sets, and from the importance of consensus and support in expatriate families. Localization, the gradual substitution of expatriate managers with local managers, contributes to the internationalizing firm’s knowledge of local markets and to building local networks. However, local managers may feel more loyal to the subsidiary than to corporate headquarters. Dedicated human resources policies can narrow this “detachment gap” (with, for example, international mobility, temporary assignments at headquarters, coaching, language training and compensation packages). People management policies, which are usually uniform and decided centrally, need to take into account the significant impact of cultural differences. The results of the GLOBE survey confirm that employees in different geographies expect their managers to behave differently, in ways ranging from focus on performance, egalitarianism, levels of involvement, and status-consciousness.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Log in via an institution
Chapter
USD 29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD 29.99
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD 37.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info
Hardcover Book
USD 37.99
Price excludes VAT (USA)
  • Durable hardcover edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

References

  • Annushkina, O., & Casalaina, G. (2010). Buone prassi di gestione delle HR per le multinazionali italiane in Russia. Economia and Management, 2, 36–44.

    Google Scholar 

  • Malnight, T. W. (1995). Globalization of an ethnocentric firm: An evolutionary perspective. Strategic Management Journal, 16(2), 119–141.

    Google Scholar 

  • Perlmutter, H. (1969). The tortuous evolution of the multinational corporation. Columbia Journal of World Business, 4(1), 9–18.

    Google Scholar 

  • Vinogradova, E., Derbilova, E. (2013). How Rosneft’s culture absorbes TNK-BP. Vedomosti. Retrieved March 14, 2019, from https://www.vedomosti.ru/library/articles/2013/06/10/a_nuka_nogi_vmeste_ruki_na_kolenyah

Selected Bibliography

  • Aryee, S., Chay, Y. W., & Chew, J. (1996). An investigation of the willingness of managerial employees to accept an expatriate assignment. Journal of Organizational Behavior, 17(3), 267–283.

    Google Scholar 

  • Banai, M. (1992). The ethnocentric staffing policy in multinational corporations: A self-fulfilling prophecy. The International Journal of Human Resource Management, 3(3), 451–472.

    Google Scholar 

  • Bartlett, C. A., & Ghoshal, S. (2003). What is a global manager? Harvard Business Review, 81(8), 101–108. Retrieved March 7, 2019, from https://hbr.org/2003/08/what-is-a-global-manager.

    Google Scholar 

  • Belderbos, R. A., & Heijltjes, M. G. (2005). The determinants of expatriate staffing by Japanese multinationals in Asia: Control, learning and vertical business groups. Journal of International Business Studies, 36(3), 341–354.

    Google Scholar 

  • Bilkey, W. J., & Nes, E. (1982). Country-of-origin effects on product evaluations. Journal of International Business Studies, 13(1), 89–99.

    Google Scholar 

  • Black, S., & Gregersen, H. B. (1991). When Yankee comes home: Factors related to expatriate and spouse repatriation adjustment. Journal of International Business Studies, 22(4), 671–694.

    Google Scholar 

  • Black, S., & Porter, W. (1991). Management behaviours and job performance: A successful manager in Los Angeles may not succeed in Hong Kong. Journal of International Business Studies, 22(1), 99–113.

    Google Scholar 

  • Bolino, M. B. (2007). Expatriate assignments and intra-organizational career success: Implications for individuals and organizations. Journal of International Business Studies, 38(5), 819–835.

    Google Scholar 

  • Brewster, C., & Pickard, J. (1994). Evaluating expatriate training. International Studies of Management and Organization, 24(3), 18–35.

    Google Scholar 

  • Brock, D. M., Shenkar, O., Shoham, A., & Siscovick, I. C. (2008). National culture and expatriate deployment. Journal of International Business Studies, 39(8), 1293–1309.

    Google Scholar 

  • Bruning, N. S., Sonpar, K., & Wang, X. (2012). Host-country national networks and expatriate effectiveness: A mixed-methods study. Journal of International Business Studies, 43(4), 444–450.

    Google Scholar 

  • Bushueva, J. (2008). Learning to reason along the same lines. Retrieved March 14, 2019, from http://www.mainjob.ru/publications/?view=2609

  • Carl, D., Gupta, V., & Javidan, M. (2004). Power distance. In R. J. House, M. Hanges, P. W. Javidan, P. W. Dorfman, & V. Gupta (Eds.), Leadership, Culture and Organizations: The Globe Study of 62 Societies (pp. 513–563). Thousand Oaks, CA: Sage Publications.

    Google Scholar 

  • Carraher, S. M., Sullivan, S. E., & Crocitto, M. M. (2008). Mentoring across global boundaries: An empirical examination of home- and host-country mentors on expatriate career outcomes. Journal of International Business Studies, 39(8), 1310–1326.

    Google Scholar 

  • Chen, C. C., Choi, J., & Chi, S.-C. (2002). Making justice sense of local-expatriate compensation disparity: Mitigation by local referents, ideological explanations, and interpersonal sensitivity in China–foreign joint ventures. The Academy of Management Journal, 45(4), 807–817.

    Google Scholar 

  • Collings, D. G., Scullion, H., & Morley, M. J. (2007). Changing patterns of global staffing in the multinational enterprise: Challenges to the conventional expatriate assignment and emerging alternatives. Journal of World Business, 42(2), 198–213.

    Google Scholar 

  • Den Hartog, D. N. (2004). Assertiveness. In R. J. House, M. Hanges, P. W. Javidan, P. W. Dorfman, & V. Gupta (Eds.), Leadership, Culture and Organizations: The Globe study of 62 societies (pp. 396–436). Thousand Oaks, CA: Sage Publications.

    Google Scholar 

  • Drachal, K. (2014). What do we know from EPRG model? Ecoforum, 3(2), 85–92.

    Google Scholar 

  • Dunette, M. (Ed.). (1976). Handbook of industrial and organizational psychology. Chicago, IL: Rand McNally College Publishing Company.

    Google Scholar 

  • Fenwick, M. S., De Cieri, H. L., & Welch, D. E. (1999). Cultural and bureaucratic control in MNEs: The role of expatriate performance management. Management International Review, 39(3), 107–124.

    Google Scholar 

  • Fukuda, K. J., & Chu, P. (1994). Wrestling with expatriate family problems: Japanese experience in East Asia. International Studies of Management and Organization, 24(3), 36–47.

    Google Scholar 

  • Gaylord, M. (1979). Relocation and the corporate family: Unexplored issues. Social Work, 24(3), 186–191.

    Google Scholar 

  • Globe Project results. (2020). Retrieved March 10, 2020, from https://globeproject.com/results/countries/JPN?menu=country

  • Granovetter, M. S. (1973). The strength of weak ties. American Journal of Sociology, 78(6), 1360–1380.

    Google Scholar 

  • Harvey, M. (1997). Dual-career expatriates: Expectations, adjustment and satisfaction with international relocation. Journal of International Business Studies, 28(3), 627–658.

    Google Scholar 

  • Hays, R. D. (1974). Expatriate selection: Insuring success and avoiding failure. Journal of International Business Studies, 5(1), 25–37.

    Google Scholar 

  • Hofstede, G. (1980). Culture’s Consequences: International Differences in Work-Related Values. Newbury Park, CA: Sage.

    Google Scholar 

  • Huselid, M. (1995). The impact of human resource management practices on turnover, productivity, and corporate financial performance. Academy of Management Journal, 38(3), 635–672.

    Google Scholar 

  • Inkpen, A. C., & Moffett, M. H. (2009). TNK-BP (Russia). Case study published by. Retrieved March 14, 2019, from www.thecasecenter.org. https://www.thecasecentre.org/educators/products/view?id=91254

  • Ivancevich, J. M. (1969). The American Manager Overseas Representing Large U.S. Industrial Corporations. Unpublished D.B.A. thesis, University of Maryland, cited by Robinson, R.D. 1978. International Business Management, Hinsdale, IL: Dryden Press; cited by Zeira, Y., Banai, M. 1985. Selection of expatriate managers in MNCs: The host-environment point of view. International Studies of Management and Organization, 15(1), 33–51.

    Google Scholar 

  • Kiessling, T., & Harvey, M. (2006). Global organizational control: A new role by inpatriates. Multinational Business Review, 14(2), 1–28.

    Google Scholar 

  • Kupka, B., & Cathro, V. (2007). Desperate housewives – social and professional isolation of German expatriate spouses. International Journal of Human Resources Management, 18(6), 951–968.

    Google Scholar 

  • Law, K. S., Song, L. J., Wong, C.-S., & Chen, D. (2009). The antecedents and consequences of successful localization. Journal of International Business Studies, 40(8), 1359–1373.

    Google Scholar 

  • Lazarova, M., Westman, M., & Shaffer, M. A. (2010). Elucidating the positive side of the work–family interface on international assignments: A model of expatriate work and family performance. The Academy of Management Review, 35(1), 93–117.

    Google Scholar 

  • Lee, Y., & Larwood, L. (1983). The socialization of expatriate managers in multinational firms. The Academy of Management Journal, 26(4), 657–665.

    Google Scholar 

  • Leiba-O'Sullivan, S. (1999). The distinction between stable and dynamic cross-cultural competencies: Implications for expatriate trainability. Journal of International Business Studies, 30(4), 709–725.

    Google Scholar 

  • Lilly financial report. (2017). Retrieved March 18, 2019, from https://investor.lilly.com/static-files/423887ae-38f3-463c-9d11-43088a30d68f

  • Mäkelä, K. (2007). Knowledge sharing through expatriate relationships: A social capital perspective. International Studies of Management and Organization, 37(3), 108–125.

    Google Scholar 

  • McNulty, Y. M., & Tharenou, P. (2004). Expatriate return on investment: A definition and antecedents. International Studies of Management and Organization, 34(3), 68–95.

    Google Scholar 

  • Michailova, S. (2002). When common sense become uncommon: Participation and empowerment in Russian companies with Western participation. Journal of World Business, 37(3), 180–187.

    Google Scholar 

  • Nahapiet, J., & Ghoshal, S. (1998). Social capital, intellectual capital, and the organizational advantage. The Academy of Management Review, 23(2), 242–266.

    Google Scholar 

  • Nowak, C., & Linder, C. (2016). Do you know how much your expatriate costs? An activity based cost analysis of expatriation. Journal of Global Mobility, 4(1), 88–107.

    Google Scholar 

  • Osland, J., & Osland, A. (2005/2006). A. Expatriate paradoxes and cultural involvement. International Studies of Management and Organization, 35(4), 91–114.

    Google Scholar 

  • Reade, C. (2003). Going the extra mile: Local managers and global effort. Journal of Managerial Psychology, 18(3), 208–228.

    Google Scholar 

  • Selmer, J. (2002). Practice makes perfect? International experience and expatriate adjustment. Management International Review, 42(1), 71–87.

    Google Scholar 

  • Shaffer, M. A., Harrison, D. A., & Gilley, K. M. (1999). Dimensions, determinants, and differences in the expatriate adjustment process. Journal of International Business Studies, 30(3), 557–581.

    Google Scholar 

  • Shay, J. P., & Baack, S. A. (2004). Expatriate assignment, adjustment and effectiveness: An empirical examination of the big picture. Journal of International Business Studies, 35(3), 216–232.

    Google Scholar 

  • Stahl, G. K., Miller, E. L., & Tung, R. L. (2002). Toward the boundaryless career: A closer look at the expatriate career concept and the perceived implications of an international assignment. Journal of World Business, 37(3), 216–227.

    Google Scholar 

  • Takeuchi, R., Shay, J. P., & Li, J. (2008). When does decision autonomy increase expatriate managers' adjustment? An empirical test. The Academy of Management Journal, 51(1), 45–60.

    Google Scholar 

  • Toh, S. M., & Denisi, A. S. (2003). Host country national reactions to expatriate pay policies: A model and implications. The Academy of Management Review, 28(4), 606–621.

    Google Scholar 

  • Wind, Y., Douglas, S. P., & Perlmutter, H. V. (1973). Guidelines for developing international marketing strategies. Journal of Marketing, 37(2), 14–23.

    Google Scholar 

  • Xu, D., Pan, Y., & Beamish, P. W. (2004). The effect of regulative and normative distances on MNE ownership and expatriate strategies. Management International Review, 44(3), 285–307.

    Google Scholar 

  • Yamazaki, Y. (2010). Expatriate adaptation: A fit between skills and demands among Japanese expatriates in USA. Management International Review, 50(1), 81–108.

    Google Scholar 

  • Zeira, Y., & Banai, M. (1985). Selection of expatriate managers in MNCs: The host-environment point of view. International Studies of Management and Organization, 15(1), 33–51.

    Google Scholar 

Download references

Author information

Authors and Affiliations

  1. SDA Bocconi School of Management, L.Bocconi University, Milan, Italy

    Olga E. Annushkina

  2. Long Term Partners S.r.l., Milan, Italy

    Alberto Regazzo

Authors
  1. Olga E. Annushkina
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. Alberto Regazzo
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to Olga E. Annushkina .

Rights and permissions

Reprints and permissions

Copyright information

© 2020 The Author(s)

About this chapter

Check for updates. Verify currency and authenticity via CrossMark

Cite this chapter

Annushkina, O.E., Regazzo, A. (2020). Implementing Internationalization Strategy: The People Question. In: The Art of Going Global. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-030-21044-1_8

Download citation

Publish with us

Policies and ethics

Search

Navigation