RT Generic
T1 When are international managers a cost effective solution? an  exploratory study in a sample of spanish mncs
A1 Bonache, Jaime
A1 Pla Barber, José
A2 Universidad Carlos III de Madrid. Departamento de Economía de la Empresa, 
AB A common claim in the literature of expatriation is the one referring to the high costs ofexpatriation. In this paper, on the basis of transaction cost literature, we show how limited thisapproach is. In particular, we 'consider a set of costs that, although ignored in traditionalexpatriation literature, must be accounted for when an MNC is deciding on whether to recruitexpatriates or local managers in its subsidiaries. These costs include selection, training andperformance evaluation costs. We also formulate a series of hypotheses around the situations inwhich the total costs of recruiting expatriates are lower than those generated by local managers. Wethem test these hypotheses in a sample of 124 SpaniSh MNCs. The results of the study allow us toexplain the apparent contradiction that, although businesses have a need to reduce costs, theycontinue to employ apparently costly practices such as expatriation.
YR 2000
FD 2000-01
LK https://hdl.handle.net/10016/9852
UL https://hdl.handle.net/10016/9852
LA eng
DS e-Archivo
RD 27 jul. 2024