MNE Staffing Policies: The Ethnocentric Approach
Ethnocentric staffing policy: fills all key management positions with home-country nationals
Core competency: the special outlook, skill, capability, and/or technology that creates unique value for a firm and is hard for rivals to imitate
People transferred from headquarters to pursue an international strategy are more likely to best under-stand and protect the firm’s core competencies.
An ethnocentric policy can result in a narrow perspective of foreign operations.