Many Japanese firms prefer expatriate Japanese managers to head their foreign operations because these managers have been socialized into the firm's culture while employed in Japan.This implies that:

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This preference for expatriate Japanese managers reflects an ethnocentric staffing policy, which assumes that individuals from the parent company are better suited to maintaining a unified corporate culture. It does not necessarily imply that these managers cannot progress beyond senior positions, nor does it directly relate to transferring competencies or the recruitment of host-country nationals.

Many Japanese Firms Prefer Expatriate Japanese Managers to Head Their