Staffing policies of Swedish MNCs: case studies of motives,
processes and factors influencing selection decisions of
managerial positions for foreign
markets

Abstract: In today’s global economy, the area of International Human Resource
Management has gained increased interest due to the significance of having
‘the right people at the right place’ in order to gain a sustainable
competitive advantage. The purpose of this study is to investigate the
staffing policies of Swedish MNCs for top managerial positions in foreign
markets. This purpose has been addressed through a qualitative multiple-case
study research where: (a) the factors influencing staffing decisions, (b)
the actual selection process, and (c) the motives for MNCs to recruit
locally in the foreign market as opposed to dispatching expatriates from
home or a third country are investigated. The companies selected for this
study are four Swedish MNCs with a long record of international activity:
IKEA, Atlas Copco, SKF, and Sandvik. The findings of this study show that:
(a) the mindset of an organization determines which candidates are
considered during the selection process and the reason for the companies to
engage in international transfers of managers is connected to their overall
international strategy, (b) the selection process is often strategic and
formalized, and vacant positions are announced publicly, (c) applying the
concept of “grandfather approval” – i.e. the recruiting manager’s superior
has to approve the selection decision- can be an effective way to decrease
the risk of subjectivity in the selection process, (d) MNCs consider the
Nationality of the selected manager to depend on the selection requirements
along with the amount of cultural differences between host- and parent
country, (e) MNCs view the cost of sending an expatriate abroad as not of
importance as long as it is results in “having the right person at the
right place”.