Towards a conceptual framework for the relationship between subsidiary staffing strategy and subsidiary performance

Staffing key management positions at host country subsidiaries is a strategic challenge for most MNEs. While previous research in this domain explored the antecedents of MNE subsidiary staffing decisions, strategic outcomes of different staffing patterns (e.g., using parent, host, or home country nationals) have been mostly overlooked. Drawing from the resource-based view of the firm, we develop a theoretical model that explains the links between different strategies for staffing key management positions in host country subsidiaries and the performance of those subsidiaries in their host markets and within their MNE networks. Further, we propose contingencies that moderate the relationship between subsidiary staffing strategy and host country and MNE network performance.