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13期生 佐藤 平太郎

Does the Localization of Human Resource Affect Business Performance of Overseas Subsidiaries?

In this paper, I address the following two questions: “Does the localization of human resource affects business performance of overseas subsidiaries?” and “What makes it work?” I empirically investigate these questions with a sample of Japanese overseas subsidiaries. The results show that the localization of human resource contributes to improving business performance under certain condition ― the localization of human resource at the CEO level can works well in a host country with relatively high average income.

Key words: Localization; human resource; overseas subsidiary; business performance

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