Staffing top management positions in multinational subsidiaries – a local perspective on expatriate management

International staffing decisions, their determinantsand effectiveness in the context of multinational corporations(MNCs) are among the core inquiries in research on MNCs,particularly International Human Resource Management(IHRM) studies. Therefore, there is ample literature onexpatriate management that covers a very broad range of topics.However, much of the research effort so far has been made toexplain expatriation mainly from the headquarters’ perspective.What is missing in such studies is multinational subsidiariespersonnel’s view on this issue. This article attempts to fill thisgap by answering a general question concerning internationalstaffing decisions: Who should run a foreign subsidiary – anexpatriate or a local manager? Moreover, the additional aim ofthis article is to indicate what should be done to improveexpatriate management. The empirical findings can alsocontribute to understanding of the general perception of anexpatriate’s role by subsidiaries’ employees. The emphasis ismainly put on staffing decisions with regards to the ChiefExecutive Officer’s (CEO) position in a multinationalsubsidiary. Yet, some empirical findings contribute to thegeneral literature on expatriate management. The author studyresulted in the following major findings: 1) Regardless of whooccupies a CEO’s position in a multinational subsidiary, i.e. anexpatriate or a host country manager (HCN), he/she must beaware of his/her role as a liaison between the cultures (namely,the national cultures and the corporate culture, and thesubsidiary culture); 2) To be effective as the liaison, themanager needs to develop his/her cultural competence and thelocal cadre’s skills; 3) He/she should also actively strengthen thesubsidiaries’ position within the MNC’s structure