Localization of Management Positions in European and Japanese Subsidiaries in Asia: A Qualitative Investigation

Expatriation induces high costs and huge difficulties. Therefore, MNCs also adopt localization strategies for management positions. This chapter compares Japanese and European MNCs, on the basis of a series of interviews of 17 MNCs in 8 countries in Asia. Japanese MNCs have not localized their management positions as much as European MNCs, but they are willing to do so. This chapter details the mechanisms for successful localization strategies of management positions.