Country-of-origin Effect on Manager's Competence Evaluations
Functioning of multinational corporations requires international staffing decisions, which involves, among other issues, sending expatriates to foreign subsidiaries and/or hiring inpatriates in the headquarters. The evaluation of a manager's professional competence by his/her subordinates, peers or superiors is determined, for example, by cultural stereotypes intertwined with the manager's nationality. Such an evaluation may affect the quality of cross-cultural interactions and therefore influence effectiveness of a MNC's staff. Thus the aim of this paper is to initially verify whether the country-of-origin of a manager may affect the perception of his/her professional competence. The analysis of this relationship is based on the literature review and the empirical findings from the authors' research. An experiment on management students is the research method that was applied in the study. As a result, the authors attempt to examine whether there are cultural stereotypes that ascribe higher or lower managerial competence to individuals from certain countries. The analysis may also contribute to the literature and research on liability of foreignness as well as cultural stigmatization issues. The empirical findings from the pilot study suggest that the nationality of a manager may affect the evaluation of his/her competences by other people. (original abstract)
- Adler N.J. and Gundersen A. (2008), International dimensions of organizational behavior, 5th ed., International Edition: South Western.
- Calhoun M.A., (2002), 'Unpacking liability of foreignness: identifying culturally driven external and internal sources of liability for the foreign subsidiary', Journal of International Management, vol. 8, pp. 301-321.
- Carr S.C., Rugimbanab R.O., Walkomb E. and Bolithoc F.H. (2001), Selecting expatriates in developing areas: 'country-of-origin' effects in Tanzania? International Journal of Intercultural Relations, vol. 25, pp. 441-457.
- Coates K. and Carr S.C. (2005), 'Skilled immigrants and selection bias: A theory-based field study from New Zealand', International Journal of Intercultural Relations, vol. 29, pp. 577-599.
- Denk N., Kaufmann L. and Roesch J.-F. (2012), 'Liabilities of foreignness revisited: a review of contemporary studies and recommendations for future research', Journal of International Management, vol. 18, pp. 322-334.
- Fang T., Samnani A.-K., Novicevic M.M. and Bing M.N. (2013), 'Liability-of-foreignness effects on job success of immigrant job seekers', Journal of World Business, vol. 48, pp. 98-109.
- Ferner A., Quintanilla J. and Varul M.Z. (2001), 'Country-of-origin effects, host-country effects, and the management of HR in multinationals: German companies in Britain and Spain', Journal of World Business, vol. 36, no. 2, pp. 107-127.
- Ghazali M., Othman M.S., Yahya A.Z. and Ibrahim M.S. (2008), 'Products and country of origin effects: The Malaysian consumers' perception', International Review of Business Research Papers, vol. 4, no.2, pp. 91-102.
- Harvey M., Ralston D. and Napierpp N. (2000), 'International relocation of inpatriate managers: assessing and facilitating acceptance in the headquarters organization', International Journal of Intercultural Relations, vol. 24, iss. 6, pp. 825-846.
- Harvey M., Novicevic M.M., Buckley M.R. and Fung H. (2005), 'Reducing inpatriate managers' 'Liability of Foreignness' by addressing stigmatization and stereotype threats', Journal of World Business, vol. 40, iss. 3, pp. 267-280.
- Harvey M., Reiche B.S., and Moeller M. (2011), 'Developing effective global relationships through staffing with inpatriate managers: The role of interpersonal trust', Journal of International Management, vol. 17, iss. 2, pp. 150-161.
- Harzing A.-W., Sorge A.M. and Paauwe J. (2002), 'HQ-subsidiary relationships in multinational companies: A British-German comparison', in: Geppert M., Matten D. and Williams K. (eds.), Challenges for European management in a global context - experiences from Britain and Germany, Basingstoke, London, New York: Palgrave.
- Harzing A.-W. and Sorge A.M. (2003), 'The relative impact of country-of-origin and universal contingencies on internationalization strategies and corporate control in multinational enterprises: World-wide and European perspectives', Organization Studies, vol. 24, pp. 187-214.
- Joardar A., Kostova T. and Ravlin E.C. (2007), 'An experimental study of the acceptance of a foreign newcomer into a workgroup', Journal of International Management, vol. 13, pp. 513-537.
- Lindholm N. (1999-2000), 'National culture and performance management in MNC subsidiaries', International Studies of Management & Organization, vol. 29, pp. 45-66.
- Lubatkin M., Calori R., Very P. and Veiga J.F. (1998), 'Managing mergers across borders: a two-nation exploration of a nationally bound administrative heritage', Organization Science, vol. 9, pp. 670-684.
- Mezias M.J. (2002), 'How to identify liabilities of foreignness and assess their effects on multinational corporations', Journal of International Management, vol. 8, pp. 265-282.
- Miller C.T., and Kaiser C.R. (2001), 'A theoretical perspective on coping with stigma', Journal of Social Issues, vol. 57, iss. 1, pp. 73-92.
- Moeller M., Harvey M., Griffith D. and Richey G. (2013), 'The impact of country-of-origin on the acceptance of foreign subsidiaries in host countries: An examination of the 'liability-of-foreignness'', International Business Review, vol. 22, pp. 89-99.
- Ngo H.-Y., Turban D., Lau C.-M. and Lui S.-Y. (1998), 'Human resource practices and firm performance of multinational corporations: Influences of country origin', The International Journal of Human Resource Management, vol. 9, pp. 632-652.
- Noorderhaven N.G. and Harzing A.-W. (2003), 'The "country-of-origin effect" in multinational corporations: Sources, mechanisms and moderating conditions', Management International Review, vol. 43, special issue 2, pp. 47-66.
- Pauly L.W. and Reich S. (1997), 'National structures and multinational corporate behavior: enduring differences in the age of globalization', International Organization, vol. 51, pp. 1-30.
- Rozkwitalska M. (2012), 'Staffing top management positions in multinational subsidiaries - a local perspective on expatriate management', Journal on GSTF Business Review, vol. 2, no. 2, pp. 50-57.
- Rozkwitalska M. (2012a), 'Managing barriers in intercultural management', in: Rozkwitalska M. (ed.), Intercultural management issues, Warsaw: Difin.
- Tregaskis O. (1995), 'HRD in foreign MNEs', International Studies of Management and Organization, 28, vol. 1, pp. 136-163.
- Zaheer S. and Mosakowski E. (1997), 'The dynamics of the liability-of-foreignness: A global study of survival in financial services', Strategic Management Journal, vol. 18, iss. 6, pp. 439-464.