Contribution of Expatriates in the Management of Subsidiaries to the Corporate Governance of International Firms: The Case of Vale (Report‪)‬

Introduction In order to meet the increasing needs of customers and thus sustain a competitive advantage in the current context of globalization, international firms, in most sectors, are joining forces and operating in networks of relationships with other firms, including their own subsidiaries. Their success thus depends, in part, on harmonizing the interests of firms subject to different legislations, market practices and cultures. Given the challenge and complexity of managing these networks (Strikwerda, 2003), the importance of corporate governance in the promotion of transparent and healthy international relationships has become evident. This has sparked a debate regarding the contribution of expatriate subsidiary managers to the corporate governance of international firms. The literature is not unanimous in recognizing their contribution (Bjorkman, 2004; Volkmar, 2003). However, the role of expatriates, especially where corporate governance is concerned, has not as yet been fully investigated or empirically tested (Minbaeva & Michailova, 2004; Riusala & Suutari, 2004).