Staffing Strategy of Japanese Companies in China (JCC) : Selection of Chief Executive Officer (CEO)

HRM practice is regarded as a source of sustained competitive advantage for organizations and a key of success for global business of MNCs. Effective staffing strategy become important for Japanese MNCs\u27 selection of top management like Chief Executive Officer(CEO). This paper is based on the underlying factors affecting the staffing decision, and tries to verify whether or not several hypotheses apply to Japanese companies in China(JCC). According to the date analysis with 1914 samples of JCCs from the statistical date by "The 21st Century China Research Institute", the result told us the majority of JCCs adopting Japanese as their CEO, regardless of a diversity of conditions, except for the locational disadvantage of inland regions and the joint decision making due to contractual alliance of joint undertakings. The impact on the effectiveness of global management due to over reliance on staffing from headquarters cannot be neglected. Managerial implications of the staffing strategy of Japanese MNCs are discussed for the purpose of improving their global HRM practices