Akiko Sato

Purpose: this study explores determinants and temporal changes in the senior management appointment process in emerging markets, especially in transitional economies. Methodology: we organized a comparative case study of Japanese automotive firms' subsidiaries in Russia, analyzing data through a process research lens. Findings: temporal effects in foreign subsidiary development impacted the senior management appointment process through evolving determinants. The determinants, such as HRM cost or expatriation advantages, varied in the middle and most recent stages, while speed advantages were prioritized in the early stage. Originality and contribution: scholars have previously discussed determinants in the senior management appointment process in foreign subsidiary development likely to impact the subsidiary’s performance. Yet, their debates have been largely dominated by institutional perspectives, lacking temporal framing. Therefore, this study advances scholarly discussions through the introduction of temporal aspects, whereby we present a novel process model and constructs.

This study investigates the mechanisms that transform the liability of outsidership into assets of outsidership. Debates on transforming the liability of foreignness into assets of foreignness have been emerging, but transforming the liability of outsidership into assets of outsidership remains unclear. Drawing on organizational learning perspectives, we provide a comparative study of Japanese automotive subsidiaries in Russia. We suggest that advanced economy multinational enterprises in emerging markets benefit from local networks with a local partner but not from non-experience-based firm-specific advantages. Our study contributes to current debates in the literature by presenting the novel concept of ‘assets of outsidership’ and discussing the mechanisms of this transformation.