Impact of Staff Localization on Turnover: The Role of a Foreign Subsidiary CEO
Great resignation has become a critical issue in management discipline and retaining talents is one of the most important properties across the globe. Among them, local staff have been regarded as an essential competitive advantage for multinational companies and their sustainability. In this sense,...
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| Format: | Article |
| Language: | English |
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MDPI AG
2022-10-01
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| Series: | Behavioral Sciences |
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| Online Access: | https://www.mdpi.com/2076-328X/12/10/402 |
| _version_ | 1797475212531335168 |
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| author | Joonghak Lee |
| author_facet | Joonghak Lee |
| author_sort | Joonghak Lee |
| collection | DOAJ |
| description | Great resignation has become a critical issue in management discipline and retaining talents is one of the most important properties across the globe. Among them, local staff have been regarded as an essential competitive advantage for multinational companies and their sustainability. In this sense, staff localization has received considerable attention from scholars and professionals; however, few studies have examined the mechanisms underlying the relationship between staff localization and turnover. This study examines the macro-level relationship between the ratio of local staff in a subsidiary and the actual turnover rate of 89 multinational companies in 25 countries through their headquarters and subsidiary staff. Additionally, the aim of this study was to identify the moderating impact of a CEO’s nationality. The results showed that local staff leave organizations in which there are more expatriates deployed from HQs. Furthermore, the CEO’s nationality buffered the relationship between staff localization and the local staff turnover. This study can contribute to the academia and practice by revealing the effect of staff localization on staff turnover. In addition, a CEO staffing strategy focusing on nationality can be considered an important factor in retaining competitive local staff during the COVID-19 pandemic for multinational companies. |
| first_indexed | 2024-03-09T20:41:58Z |
| format | Article |
| id | doaj.art-8e73ed88889d4896b4c72361484e6263 |
| institution | Directory Open Access Journal |
| issn | 2076-328X |
| language | English |
| last_indexed | 2024-03-09T20:41:58Z |
| publishDate | 2022-10-01 |
| publisher | MDPI AG |
| record_format | Article |
| series | Behavioral Sciences |
| spelling | doaj.art-8e73ed88889d4896b4c72361484e62632023-11-23T22:56:37ZengMDPI AGBehavioral Sciences2076-328X2022-10-01121040210.3390/bs12100402Impact of Staff Localization on Turnover: The Role of a Foreign Subsidiary CEOJoonghak Lee0College of Business, Gachon University, Seongnam-si 13120, KoreaGreat resignation has become a critical issue in management discipline and retaining talents is one of the most important properties across the globe. Among them, local staff have been regarded as an essential competitive advantage for multinational companies and their sustainability. In this sense, staff localization has received considerable attention from scholars and professionals; however, few studies have examined the mechanisms underlying the relationship between staff localization and turnover. This study examines the macro-level relationship between the ratio of local staff in a subsidiary and the actual turnover rate of 89 multinational companies in 25 countries through their headquarters and subsidiary staff. Additionally, the aim of this study was to identify the moderating impact of a CEO’s nationality. The results showed that local staff leave organizations in which there are more expatriates deployed from HQs. Furthermore, the CEO’s nationality buffered the relationship between staff localization and the local staff turnover. This study can contribute to the academia and practice by revealing the effect of staff localization on staff turnover. In addition, a CEO staffing strategy focusing on nationality can be considered an important factor in retaining competitive local staff during the COVID-19 pandemic for multinational companies.https://www.mdpi.com/2076-328X/12/10/402staff localizationturnoversubsidiary CEOpsychological contractSouth Korean MNCs |
| spellingShingle | Joonghak Lee Impact of Staff Localization on Turnover: The Role of a Foreign Subsidiary CEO Behavioral Sciences staff localization turnover subsidiary CEO psychological contract South Korean MNCs |
| title | Impact of Staff Localization on Turnover: The Role of a Foreign Subsidiary CEO |
| title_full | Impact of Staff Localization on Turnover: The Role of a Foreign Subsidiary CEO |
| title_fullStr | Impact of Staff Localization on Turnover: The Role of a Foreign Subsidiary CEO |
| title_full_unstemmed | Impact of Staff Localization on Turnover: The Role of a Foreign Subsidiary CEO |
| title_short | Impact of Staff Localization on Turnover: The Role of a Foreign Subsidiary CEO |
| title_sort | impact of staff localization on turnover the role of a foreign subsidiary ceo |
| topic | staff localization turnover subsidiary CEO psychological contract South Korean MNCs |
| url | https://www.mdpi.com/2076-328X/12/10/402 |
| work_keys_str_mv | AT joonghaklee impactofstafflocalizationonturnovertheroleofaforeignsubsidiaryceo |