Search Results (3)

Great resignation has become a critical issue in management discipline and retaining talents is one of the most important properties across the globe. Among them, local staff have been regarded as an essential competitive advantage for multinational companies and their sustainability. In this sense, staff localization has received considerable attention from scholars and professionals; however, few studies have examined the mechanisms underlying the relationship between staff localization and turnover. This study examines the macro-level relationship between the ratio of local staff in a subsidiary and the actual turnover rate of 89 multinational companies in 25 countries through their headquarters and subsidiary staff. Additionally, the aim of this study was to identify the moderating impact of a CEO’s nationality. The results showed that local staff leave organizations in which there are more expatriates deployed from HQs. Furthermore, the CEO’s nationality buffered the relationship between staff localization and the local staff turnover. This study can contribute to the academia and practice by revealing the effect of staff localization on staff turnover. In addition, a CEO staffing strategy focusing on nationality can be considered an important factor in retaining competitive local staff during the COVID-19 pandemic for multinational companies. Full article

Given the prevalence of dual directors who serve simultaneously on the parent as well as the subsidiary board, it is important to examine their functions, a topic largely ignored in the existing literature. Exploring the functions of dual directors highlights equity carve-out objectives other than strategic refocusing. To examine our hypothesis, we first conducted an event study to examine stock market reaction to carve-out decisions. In addition, we compared subsidiaries’ performance after carve-outs between firms with dual directors and their matching firms based on the propensity score. We find evidence that the Japanese stock market reacts positively to the presence of dual directors who hold CEO positions in carve-out subsidiaries, especially when they are relatively young. Additionally, we find that carve-out subsidiaries led by young dual directors tend to outperform their matched counterparts in the long run. In contrast, when dual directors do not hold the CEO position, we find no evidence of the stock market reacting positively to them. The results of this study suggest that young CEOs appointed from the internal labor markets care more about long-term reputation, and can enhance shareholder wealth of both parent and subsidiary firms. Full article

Situational leadership theory and the contingency approach of leadership were utilized and applied based on situational theory. Based on a total of four foundational theories, that is, bottom-up spillover theory, theories of prosocial behavior, and so on, this study empirically analyzed what influence a chief executive officer’s (CEO’s) sustainable leadership styles (servant, ethical, and authentic leadership) have on the psychological well-being and organizational citizenship behaviors of organization members. The study was conducted on adult employees of midsized or larger companies (including subsidiaries) across four countries: South Korea, the United Kingdom, the United States, and South Africa. Data were obtained from 649 adult employees. SmartPLS was used to conduct structural equation modeling analysis of the data. The results were as follows: (1) CEOs’ servant and authentic leadership styles had statistically significant positive (+) effects on employees’ psychological well-being; however, ethical leadership did not. (2) CEOs’ ethical leadership had a statistically significant (+) effect on employees’ organizational citizenship behavior; however, servant and authentic leadership did not. (3) Employees’ psychological well-being had a statistically significant (+) effect on organizational citizenship behavior. CEOs are attracting more attention than ever, leading companies in today’s rapidly changing times. This suggests that it is necessary to comprehend principles that show when, where, and how important leaders are and sustainable leadership styles that can increase their chances of success. Moreover, this study derived constructive implications that a leader can overcome today’s challenges through sustainable leadership styles. Full article