Successful localization programs in China: an important element in strategy implementation

Globalization has resulted in firms increasingly establishing operations in other countries, often as a way to reduce costs. Localizing management, by replacing expatriates with locals further reduces operating costs, can be important to successful strategy implementation. This study examined expatriate localization programs in 67 multinational firms operating within the Peoples' Republic of China (PRC). The results show that planning aspects of a localization program and efforts to improve selection have significant, positive effects on the program's success.