Connecting managers’ international work experience, advice networks, and subsidiary-unit performance: a social capital perspective

Abstract

Purpose This study aims to examine whether and why subsidiary-unit managers’ prior international work experiences across multinational enterprises’ (MNEs) home and host countries impact their subsidiary-unit performance, considering the mediating effect of their advice networks. Design/methodology/approach A survey on 222 subsidiary-unit managers (154 parent country nationals [PCNs] and 68 host country nationals [HCNs]) of a Korean MNE operating in China, Vietnam, Thailand, Singapore, Hungary and Slovakia was conducted. The authors analyzed the data using partial least square structural equation modeling, multigroup analysis and bootstrapping techniques. Findings PCN subsidiary managers with more prior international work experience manage better-performing units due to the strength of the manager’s advice networks across local parties. However, for HCN subsidiary managers, this study did not find such mediating roles of the size and strength of their advice networks in the MNE home country. Originality/value This study provides novel insights and empirical evidence about the effect of the length of prior international work experience of subsidiary managers on their advice-seeking networks and subsidiary-unit performance. In addition, it draws on and add to social capital theory about how international work experience impacts dealing with local businesses and the relationship with corporate headquarters.