How to Attract Talented Expatriates: The Key Role of Sustainable HRM

Abstract

Retaining talented expatriates is important for multinational enterprises (MNEs) to maintain knowledge sustainability between their headquarters (HQ) and subsidiaries. However, depending on the host country image of a subsidiary, the attractiveness of the subsidiary may make it challenging to recruit prospective expatriates. Based on the sustainable human resource management (HRM) perspective, this study examines the direct effect of the host country image of a subsidiary and the moderating effect of family support policies on a subsidiary's attractiveness, by comparing subsidiaries in the US and Vietnam. The results are based on data from 434 Korean potential expatriate applicants and show that the host country image of a subsidiary has a direct effect on the subsidiary's attractiveness. Specifically, expatriate applicants are less attracted to a Vietnam-based subsidiary than to a US-based one. Further, the positive moderating effect of family support policies on subsidiary attractiveness is more relevant for the Vietnam-based subsidiary. This result suggests that family support policies can be a key strategy for overcoming the less preferred host country images of subsidiaries in emerging markets, thus improving subsidiary sustainability in the long term. The implications of these findings are provided in the context of sustainable HRM and the existing expatriate literature.