Selection of Expatriate Managers in MNCs: The Host-Environment Point of View

Most multinational corporations (MNCs) assign expatriate managers (parent-country nationals or third-country nationals) to fill managerial jobs in their regional headquarters or their subsidiaries in host countries. Some MNCs apply this staffing policy to only very few key positions or to crucial stages in their overseas operations whereas others apply it quite widely and staff many top positions in their subsidiaries with expatriate managers (EMs). A recent study reports that the current expatriate work force totals more than 60,000 people (Holmes and Piker, 1980). There are indications that its failure rate is quite high. For example, a Business International study (1970) points out that the estimated turnover rate for U.S. EMs may be as high as 30 percent of cases. Torbiorn (1982. P. 44), who studied 639 Swedish expatriate managers in 26 countries, found that 257 returned before the end of their contracts. Desatnick and Bennett (1978. P. 173) state, "The