Liability of Foreignness and the Uses of Expatriates in Japanese Multinational Corporations in the United States

• DOI: 10.1111/j.1475-682x.2000.tb00898.x
• Publication Date: 2007-01-09T19:11:56Z
• Authors: Hisako Matsuo
• Keywords: 0502 economics and business; 05 social sciences; 8. Economic growth

This paper examines the factors which determine use of expatriates (parent company managers) in Japanese multinational corporations United States, addressing issue “liability foreignness” establishing new ventures an international context. The attempts to explain theoretically variance proportion used across these States subsidiaries, drawing on resource dependence theory. Previous research suggests that when liabilities foreignness are high, and there is a need develop organizational forms insure reliable flows coordinate activities, then will substitute for local personnel. Data 3,119 corporate establishments derived from section Kaigai Shinshutsu Kigyo Soran [List Japanese‐Owned Firms Abroad] (Toyokeizai 1995), seeing as agents who engage transactions necessary resources with surrounding parent companies.