Host-Country National Expatriates

Abstract

Discussions regarding managers in overseas subsidiaries often center around only two options: (a) sending someone from the parent country (a parent-country national expatriate, or P-CONE), or (b) using a local resource (a host-country national). The conventional wisdom is for a parent company to send a P-CONE when an overseas subsidiary is in the initial start-up phase, and to eventually promote a local host-country national. However, this paper introduces a case where headquarters (c) hired a local resource (a host-country national expatriate, or H-CONE) and sent that person to the host country, and this was a superior solution to the other two options for externalizing local issues and developing a business based on a relationship with the parent country. Exchange students from other parts of Asia are currently increasing in Japan, as are exchange students being hired by Japanese companies. For Japanese companies expanding in Asia, this third option is becoming more of a reality. A new human resource strategy needs to be developed that breaks away from only the dual options of (a) and (b) and includes (c).