An Analysis of the Functions of International Transfers of Managers in Mncs

The aim of this article is to get a clearer picture of why multinational companies (MNCs) send out expatriates. We identify three organisational functions of international transfers: position filling, management development and coordination & control. Based on an empirical study with results from 212 subsidiaries of MNCs from 9 different home countries, located in 22 different host countries, we show that the importance that is attached to these functions differs between subsidiaries in MNCs from different home countries, between subsidiaries in different host regions and in addition varies with the level of cultural difference. Position filling is seen as most important for subsidiaries of American and British MNCs and in the Latin American and Far Eastern region. Management development is seen as most important for subsidiaries of German, Swiss and Dutch MNCs and tends to occur more in Anglo-Saxon countries than in the Far Eastern region. Transfers for coordination & control seems to be most important for subsidiaries of German and Japanese MNCs and in host countries that are culturally distant from headquarters. We argue that these differences might have important consequences for expatriate management. Key-words: multinational companies, international transfers, expatriation