Estimating the determinants of executive selection in multinational companies: A two-sided matching model

UNCG Author/Contributor (non-UNCG co-authors, if there are any, appear on document)
Marketa Rickley, Assistant Professor (Creator)
The University of North Carolina at Greensboro (UNCG )
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Abstract: Using a unique dataset on subsidiary executive appointments in multinational banks and a competitive assignment matching model, this study investigates executive selection in the international labour market. The international context is characterised by heterogeneous firms with varied human capital needs, allowing for a nuanced examination of the determinants of executive selection along multiple human capital dimensions, with a particular emphasis on firm-specific versus general human capital. The study explores (i) the determinants of executive selection in MNC subsidiaries, (ii) how these determinants shift relative to economic conditions, and (iii) how they differ for two types of functional roles. I find that the relationship between human capital and the firm's resource base is largely complementary; however, firm-specific human capital is the dominant determinant of executive selection during an economic upswing, but during an economic downturn firm-specific human capital is nearly four times weaker in driving selection than general human capital.

Additional Information

European Journal of International Management, 12(5/6), 596-623.
Language: English
Date: 2018
executive selection, competitive assignment matching model, international labour markets, strategic human capital, general human capital, firm-specific human capital, MNCs, multinational corporations, foreign subsidiaries

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