Managing local employees: expatriate roles in a subsidiary

ISSN： 0025-1747

Source： Management Decision, Vol.46, Iss.5, 2008-05, pp. : 743-760

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Abstract

Purpose ‐ In order to identify expatriate roles in a subsidiary it is necessary to go beyond those functions which are subservient to the headquarters. This paper sets out to prescribe a new spectrum of development roles with respect to varying capabilities and development needs of local employees. Design/methodology/approach ‐ The roles of expatriates are analyzed based on seven case studies conducted with top automobile manufacturers in Thailand: Toyota Motor Thailand; Hino Motors (Thailand); Honda Automobile (Thailand); Isuzu Motors (Thailand); BMW (Thailand); DaimlerChrysler (Thailand); and Auto Alliance (Thailand). Findings ‐ Four types of expatriate roles ‐ commander, conductor, coach, and connector ‐ are proposed; the roles correspond to the degree of task readiness and managerial capabilities of local employees. Practical implications ‐ The paper provides a tool that will help expatriates understand their roles according to the technical skills and managerial capabilities of local employees. Originality/value ‐ The paper offers practical advice for diagnosing expatriate roles and their training prior to assignment to a subsidiary.