Expatriate compesation and its link to subsidiary strategic role : a theoretical analysis

This paper focuses on the strategic design of expatriates' salaries. Unlike standard expatriation literature that assumes a lack of connection between strategy and international managers' compensation, we use the theoretical concepts from the international strategic management research to discuss how different international strategies affect the way expatriates are compensated. In this respect, the paper proposes a series of hypotheses on how expatriate compensation systems take shape according to the role that the expatriates may play in the internationalization process. The hypotheses refer to the type of incentives offered to encourage acceptance of the assignment, the type of criteria used to evaluate their performance, and the reference unit used to establish variable compensation

[1]  Jaime Bonache,et al.  Global integration without expatriates , 1997 .

[2]  Welch Denice,et al.  Linking operation mode diversity and IHRM , 1994 .

[3]  S. Ghoshal,et al.  Differentiated fit and shared values: Alternatives for managing headquarters‐subsidiary relations , 1994 .

[4]  Abagail McWilliams,et al.  Human resources and sustained competitive advantage: a resource-based perspective , 1994 .

[5]  Denice Welch,et al.  Determinants of International Human Resource Management Approaches and Activities: A Suggested Framework* , 1994 .

[6]  Michael G. Harvey.  Empirical Evidence of Recurring International Compensation Problems , 1993 .

[7]  R. M. Hall,et al.  A framework linking intangible resources and capabilities to sustainable competitive advantage , 1993 .

[8]  Peter J. Dowling,et al.  An Integrative Framework of Strategic International Human Resource Management , 1993 .

[9]  Margaret A. Peteraf.  The cornerstones of competitive advantage: A resource‐based view , 1993 .

[10]  A. Morrison,et al.  Implementing Global Strategy: Characteristics of Global Subsidiary Mandates , 1992 .

[11]  E. Naumann,et al.  A Conceptual Model of Expatriate Turnover , 1992 .

[12]  B. Kogut,et al.  Knowledge of the Firm, Combinative Capabilities, and the Replication of Technology , 1992 .

[13]  S. Snell,et al.  Integrated Manufacturing and Human Resource Management: A Human Capital Perspective , 1992 .

[14]  Joseph T. Mahoney,et al.  The resource-based view within the conversation of strategic management , 1992 .

[15]  S. Finkelstein,et al.  Effects of strategic orientation and environmental change on senior management reward systems , 1992 .

[16]  P. Wright,et al.  Theoretical Perspectives for Strategic Human Resource Management , 1992 .

[17]  David B. Balkin,et al.  Compensation, Organizational Strategy, and Firm Performance , 1992 .

[18]  Anil K. Gupta,et al.  Knowledge Flows and the Structure of Control Within Multinational Corporations , 1991 .

[19]  David M. Schweiger,et al.  Global Strategy Implementation at the Business Unit Level: Operational Capabilities and Administrative Mechanisms , 1991 .

[20]  J. Jarillo,et al.  Coordination Demands of International Strategies , 1991 .

[21]  J. Johnston.  An Empirical Study of The Repatriation of Managers in UK Multinationals , 1991 .

[22]  Chris Brewster,et al.  The Management of Expatriates , 1991 .

[23]  R. Grant.  The Resource-Based Theory of Competitive Advantage: Implications for Strategy Formulation , 1991 .

[24]  J. Barney.  Firm Resources and Sustained Competitive Advantage , 1991 .

[25]  Nakiye Avdan Boyacıgiller,et al.  The Role of Expatriates in the Management of Interdependence Complexity and Risk in Multinational Corporations , 1990 .

[26]  Karel Cool,et al.  Asset stock accumulation and sustainability of competitive advantage , 1989 .

[27]  S. Ghoshal,et al.  Internal differentiation within multinational corporations , 1989 .

[28]  J. Hamill.  Expatriate Policies in British Multinationals , 1989 .

[29]  Michael Goold,et al.  Strategies and Styles , 1989 .

[30]  Michael G. Harvey.  Repatriation of Corporate Executives: An Empirical Study , 1989 .

[31]  Cynthia A. Montgomery,et al.  Diversification, Ricardian rents, and Tobin's q , 1988 .

[32]  R. Grant.  On 'Dominant Logic', Relatedness and the Link between Diversity and Performance , 1988 .

[33]  C. Hill,et al.  Internal Capital Market Controls and Financial Performance in Multidivisional Firms , 1988 .

[34]  C. Lengnick-Hall,et al.  Strategic Human Resources Management: A Review of the Literature and a Proposed Typology , 1988 .

[35]  S. Kobrin.  Expatriate reduction and strategic control in American multinational corporations , 1988 .

[36]  Gareth R. Jones,et al.  Transaction cost analysis of strategy‐structure choice , 1988 .

[37]  Rosalie L. Tung.  The new expatriates : managing human resources abroad , 1987 .

[38]  Mark E. Mendenhall,et al.  Expatriate Selection, Training and Career‐Pathing: A Review and Critique , 1987 .

[39]  C. Bartlett,et al.  Managing Across Borders: New Organizational Responses , 1987 .

[40]  D. Teece.  TRANSACTIONS COST ECONOMICS AND THE MULTINATIONAL ENTERPRISE An Assessment , 1986 .

[41]  N. Adler.  International Dimensions of Organizational Behavior , 1986 .

[42]  David Cray,et al.  Control and Coordination in Multinational Corporations , 1984 .

[43]  R. Caves,et al.  Multinational Enterprise and Economic Analysis: Preface , 2007 .

[44]  B. Wernerfelt,et al.  A Resource-Based View of the Firm , 1984 .

[45]  Lee Dyer,et al.  Studying Human Resource Strategy: An Approach and an Agenda , 1984 .

[46]  David J. Teece,et al.  Towards an economic theory of the multiproduct firm , 1982 .

[47]  G. Hofstede,et al.  Culture′s Consequences: International Differences in Work-Related Values , 1980 .

[48]  C. Howard.  The expatriate manager and the role of the MNC. , 1980 .

[49]  K. N. M. Dundas,et al.  Corporate strategy and the concept of market failure , 1980 .

[50]  William G. Ouchi,et al.  Markets, Bureaucracies, and Clans. , 1980 .

[51]  Jay R. Galbraith,et al.  Transfer of Managers as a Coordination and Control Strategy in Multinational Organizations. , 1977 .

[52]  Jay Galbraith,et al.  Organization Design , 1977 .

[53]  Gerald T. West.  Overseas investment and political risk , 1976 .

[54]  S. Hymer,et al.  The International Operations of National Firms: A Study of Direct Foreign Investment , 1976 .

[55]  J. Lorsch,et al.  Managing Diversity and Interdependence , 1973 .

[56]  M. Polanyi.  Chapter 7 – The Tacit Dimension , 1997 .

[57]  S. Ghoshal,et al.  Interunit Communication in Multinational Corporations , 1994 .

[58]  R. Grosse,et al.  International business: Theory and managerial applications , 1992 .

[59]  Peter J. Dowling,et al.  International Dimensions of Human Resource Management , 1990 .

[60]  K. Eisenhardt.  Agency Theory: An Assessment and Review , 1989 .

[61]  T. Roehl,et al.  Mobilizing invisible assets , 1987 .

[62]  J. F. Pickering,et al.  DIVISIONALIZATION, DECENTRALIZATION AND PERFORMANCE OF LARGE UNITED KINGDOM COMPANIES 1 , 1986 .

[63]  Ingemar Torbiörn,et al.  Living abroad : personal adjustment and personnel policy in the overseas setting , 1982 .

[64]  Robert T. Moran.  Managing Cultural Differences , 1979 .

[65]  O. Williamson.  Markets and Hierarchies , 1975 .