Why a Multinational Firm Chooses Expatriates: Integrating Resource-Based, Agency and Transaction Costs Perspectives

Authors: Tan, Danchi; Mahoney, J. T.¹

Source: Journal of Management Studies, Volume 43, Number 3, May 2006 , pp. 457-484(28)

Publisher: Blackwell Publishing

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Abstract:

This paper develops an integrative organizational economics framework explaining and predicting multinational firms' managerial resource deployments based on resource-based, agency, and transaction costs theories. Our empirical findings suggest that the governance decision for managerial services of multinational firms is influenced not only by the comparative capabilities of managers, but also by the economic costs to the firm of influencing the behaviours of managers through managerial contracting.

Document Type: Research article

DOI: 10.1111/j.1467-6486.2006.00598.x

Affiliations: 1: University of Illinois at Urbana–Champaign

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