Abstract/Summary

Purpose – We examine whether and why subsidiary-unit managers’ prior international work experiences across multinational enterprises (MNE) home and host countries impact their subsidiary-unit performance, considering the mediating effect of their advice networks. Design/methodology/approach – A survey of 222 subsidiary-unit managers (154 PCNs and 68 HCNs) of a Korean MNE operating in China, Vietnam, Thailand, Singapore, Hungary, and Slovakia was conducted. We analyzed the data using partial least square structural equation modeling, multi-group analysis, and bootstrapping techniques. Findings – Parent country national (PCN) subsidiary managers with more prior international work experience manage better-performing units due to the strength of the manager’s advice networks across local parties. However, for host country national (HCN) subsidiary managers, we did not find such mediating roles of the size and strength of their advice networks in the MNE home country. Originality/value – We provide novel insights and empirical evidence about the effect of the length of prior international work experience of subsidiary managers on their advice-seeking networks and subsidiary-unit performance. In addition, we draw on and add to the social capital theory about how international work experience impacts dealing with local businesses and the relationship with corporate headquarters.