Subsidiary Role and Skilled Labour Effects in Small Developed Countries

Abstract

The proportion of skilled labour in subsidiaries is influenced by size and development of host country, and subsidiary role, the latter being connected to autonomy and intra-organisational relationships.

In this paper, we conceptually explore subsidiary¿s proportion of skilled labour in relation to subsidiary role within the context of a small developed country. Specifically, we draw on the literature of strategic development of multinational corporations, and insights of inward foreign direct investments in small developed countries. This is presented in a unifying framework in order to predict diverse categorizations of subsidiary role¿s impact on the proportion of skilled labour in subsidiaries.