Belgian multinational corporations’ staffing decisions for subsidiary manager positions – A case study approach

In today’s highly internationalised business environment, issues related to Human Resource across national borders have gained a growing attention due to the need to have the right person at the right place. This study explore how multinational corporation decided who will be in charge in their foreign subsidiaries. This objective has been assessed through a qualitative multiple-case study approach in which; (1) the determinants of subsidiary staffing composition; (2) the factors moderating the choice to appoint a local national or an expatriate as subsidiary manager; and (3) the selection process for top subsidiary manager positions have been investigated. To conduct the present research, four Belgian multinational firms have been selected; namely Delhaize, Agfa-Gevaert, Umicore, and SIPEF. Results driven from the empirical data verify that: (1) the managerial orientation of the organisation influence the selection for subsidiary manager position; (2) the selection process is usually carried out formally, and open positions publicly advertised; (3) applying the grandfather principle — a senior manager reduces the degree of subjectivity in the selection process; (4) The influence of the cost of international transfer decreases when the candidate is considered as the ‘right’ person.