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journal article Host Country National Reactions to Expatriate Pay Policies: A Model and ImplicationsThe Academy of Management Review Vol. 28, No. 4 (Oct., 2003) , pp. 606-621 (16 pages) Published By: Academy of Management https://doi.org/10.2307/30040750 https://www.jstor.org/stable/30040750 Read and download Log in through your school or library Alternate access options For independent researchers Read Online Read 100 articles/month free Subscribe to JPASS Unlimited reading + 10 downloads Purchase article $29.00 - Download now and later Abstract We examine the referent selection process of host country national (HCN) employees. We outline the conditions under which they are more likely to select expatriate colleagues as comparative referents and suggest that, when this occurs, they are likely to experience relative deprivation. We also highlight the role of national culture in the process. Our model shifts the focus of overseas assignments research from the expatriate to the HCN, and it also has important practical implications for multinational enterprises sending employees overseas. Journal Information The Academy of Management Review, now in its 26th year, is the most cited of management references. AMR ranks as one of the most influential business journals, publishing academically rigorous, conceptual papers that advance the science and practice of management. AMR is a theory development journal for management and organization scholars around the world. AMR publishes novel, insightful and carefully crafted conceptual articles that challenge conventional wisdom concerning all aspects of organizations and their role in society. The journal is open to a variety of perspectives, including those that seek to improve the effectiveness of, as well as those critical of, management and organizations. Each manuscript published in AMR must provide new theoretical insights that can advance our understanding of management and organizations. Most articles include a review of relevant literature as well. AMR is published four times a year with a circulation of 15,000. Publisher Information The Academy of Management (the Academy; AOM) is a leading professional association for scholars dedicated to creating and disseminating knowledge about management and organizations. The Academy's central mission is to enhance the profession of management by advancing the scholarship of management and enriching the professional development of its members. The Academy is also committed to shaping the future of management research and education. Founded in 1936, the Academy of Management is the oldest and largest scholarly management association in the world. Today, the Academy is the professional home for more than 18290 members from 103 nations. Membership in the Academy is open to all individuals who find value in belonging. Rights & Usage This item is part of a JSTOR Collection.
 AbstractWe systematically review theoretical and empirical research published in 38 journals over the last 52 years dealing with host-country nationals (HCNs) in multinational enterprises. We find that HCNs are treated in a relatively homogeneous manner, despite their important differences. Three themes dominate: HCN–expatriate relationships, human resources policies and practices influencing HCNs, and the impact of expatriate interactions on different HCNs. Social psychology theories are commonly applied, and most studies are empirical and cross-sectional. We suggest a more refined treatment of HCNs, promising theoretical and methodological approaches, and thematic directions to enrich the HCN literature further. Section snippetsIntroduction and contributionThis article reviews five decades of research on host-country nationals (HCNs), defined as local employees in multinational enterprises’ (MNEs) overseas subsidiaries (Oltra et al., 2013). HCNs are the largest group of MNE employees (Ando & Paik, 2013; Singh et al., 2019a) and critical stakeholders in MNEs – their knowledge and capabilities are essential to MNEs’ success in the host locations (Varma et al., 2016a). They experience distinct opportunities and face complex challenges despite not The nature and boundaries of the reviewThis systematic literature review is based on a comprehensive, rule-based process (Adams et al., 2017); it is structured and transparent (Hiebl, 2021), aiming to understand the arguments that define conversations around the question of interest (Arshad & Danson, 2015). We follow Denyer and Tranfield's (2009, p. 674) recommended five-step process for conducting systematic reviews: “formulating a question, locating studies, selecting and evaluating studies, analyzing and synthesizing the studies, Temporal development, types, and geographic breadth of HCN researchAs seen in Fig. 2, scholarly research on HCNs has continued for the entire 52-year period, despite some stagnation in the 1980s. 111 articles report empirical studies, 20 are conceptual, and five are reviews. Of the empirical articles, 103 (93%) are cross-sectional, and eight (7%) are longitudinal. As Fig. 3 shows, 73 (66%) of these are quantitative, and four (4%) use mixed methods designs. Thirty-four (31%) are qualitative, most of which have been published in the last decade. Of the 111 Research themes, theoretical underpinnings, and key insightsFollowing the steps outlined in Section 2, the thematic analysis of the 136 articles led us to catalog the three main themes shown in Table 2: (i) HCN–expatriate (HCN–E) relationships (71 articles, 52% of the sample), (ii) MNEs’ HRM policies and practices related to HCNs (46, 34%), and (iii) impact of expatriate interactions on different HCNs (19, 14%). Table 4 summarizes the number of empirical, conceptual/theoretical, and review papers classified under each theme. Empirical studies are further Agenda for future HCN researchWe predict that HCN research will not only continue to be vibrant; it will intensify. One reason for this is the expectation that organizations may localize some expatriate roles to mitigate risks (Dickmann et al., 2019) from de-globalization trends resulting from exogenous shocks (Ciravegna and Michailova, 2022), including the latest pandemic and geopolitical tensions and conflicts. Organizations’ familiarity with virtual processes, which became common during COVID, might also instigate ConclusionThis systematic literature review spanning 52 years and 38 carefully selected journals establishes a foundation for understanding the issues that have been of interest and the arguments that have so far defined the scholarly conversations around HCNs in MNEs. It offers a structured, comprehensive, and transparent account of HCN research. The review shows that HCN research is vibrant yet uneven. Scholars have learned much about why and how HCNs support or share information with expatriates but Snejina Michailova is a Professor of International Business at the University of Auckland, New Zealand. Her research in the field of International Business focuses on people in multinationals. Her academic work has appeared in the Academy of Management Review, Academy of Management Executive, Academy of Management Learning & Education, British Journal of Management, California Management Review, Global Strategy Journal, International Journal of Management Reviews, Journal of International
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Also known as host-country nationals, these employees are hired for jobs in their own country. For example, a United Kingdom citizen who is employed at Coca Cola's U.K. subsidiary is a local national.
What is parent country nationals?The 'Parent Country National' or 'PCN' is an employee who is working in a different country than his original country of birth. They are also referred to as 'expats' or 'expatriates'.
Which of the following is an advantage of staffing host country nationals HCNs in top positions of a company?Which of the following is an advantage of staffing parent-country nationals (PCNs) in top positions of a company? Control by headquarters is facilitated.
Why are third country nationals increasingly being used to fill expatriate assignments?The main reason why companies use third-country nationals as a staffing strategy is the ability of a candidate to represent the company's interests and transfer corporate technology and competencies. Sometimes the best person to do this isn't based in the United States or in the host country.
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In multinational enterprises, host-country nationals (hcns) are generally referred to as expats.
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