Circumstances for staffing expatriates to Japan-based foreign MNC affiliates

The purpose of this study is to analyze MNC expatriates in Japan, and
we do this for the biggest 643 Japan-based foreign MNC. This research
covers specifically the performance and expatriation and does this in
three specific fields: the relative size, the level of ownership in
percentage, and the age of the MNC in Japan. We basically ask a simple
question: Do companies with expatriates outperform the other companies
which rely on local staff? We find a positive correlation between
expatriation and the performance of the Japan-based foreign MNC
affiliates. Better performing affiliates tend to be led by expatriate
top managers and there are also more expatriates on the board. The
higher the ownership share of the affiliate, the higher the chance of
expatriate top manager representation and the more expatriate board
members are sent to the Japan-based foreign MNC affiliates. The
performance correlates also positively with the percentage of
ownership. Concerning relative size and expatriation, we find partial
confirmation. The relative size of the affiliates correlates positively
(at least) to expatriate board members but negatively to performance.
The age did not show any correlation with either expatriation or
performance.

Ralf Bebenroth is an associate professor at the Research Institute for
Economics & Business Administration at Kobe University where he
teaches both economics and business administration in Japanese
language. Besides, he is trustee in the biggest Japanese Forest
Association (NPO Houjin 22 seiki yama-mori saisei netto). Ralf
Bebenroth also consults to German investments, especially in the Kansai
area.