Why a multinational firm chooses expatriates: Integrating resource-based, agency and transaction costs perspectives

Danchi Tan, J. T. Mahoney

Research output: Contribution to journalArticle

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.

Original languageEnglish (US)
Pages (from-to)457-484
Number of pages28
JournalJournal of Management Studies
Volume43
Issue number3
DOIs
StatePublished - May 1 2006
Externally publishedYes

ASJC Scopus subject areas

  • Business and International Management
  • Strategy and Management
  • Management of Technology and Innovation

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