During the last 15 years, several studies have started to use large firm-level data-sets,
combining country-level data for home and host countries to explain variations in the degree
of expatriation of subsidiary companies (e.g. Gaur, Delios, and Singh 2007). This would be
appropriate if the combination of home-country firms across all host countries is broadly
similar and, therefore, comparable. But this is never the case, as firms from the same home
country are attracted to a host country for a range of different reasons. In other words, the
‘average home-country firm’ does not exist. It, therefore, remains unclear whether the
specifics of parent and subsidiary firms, rather than the specifics of home and host countries,
explain the degree of expatriation in subsidiaries of MNCs across host countries.
During the last 15 years, several studies have started to use large firm-level data-sets,combining country-level data for home and host countries to explain variations in the degreeof expatriation of subsidiary companies (e.g. Gaur, Delios, and Singh 2007). This would beappropriate if the combination of home-country firms across all host countries is broadlysimilar and, therefore, comparable. But this is never the case, as firms from the same homecountry are attracted to a host country for a range of different reasons. In other words, the‘average home-country firm’ does not exist. It, therefore, remains unclear whether thespecifics of parent and subsidiary firms, rather than the specifics of home and host countries,explain the degree of expatriation in subsidiaries of MNCs across host countries.
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