An ethnocentric staffing policy is one in which parent-country nationals fill all key management positions. This practice was widespread at one time. Firms such as procter&Gamble,Philips NV,and Matsushita originally followed it. In the Dutch firm Philips, for example, all important positions in most foreign subsidiaries were at one time held by Dutch nationnal, who were referred to by their non Dutch colleagues as the Dutch Mafia.In many japanese and South Korean firms. such as Toyata, Matsushita,and samsung,key positions in international operations have often been held by home country nationals Ac cording to the japanese Overseas Enterprise Association, in 1996 only 29 percent of for percent of the japanese subsidiaries of foreign companies had japanese. presidents.