Compensation strategy in transnational corporations

Abstract

Forces associated with globalization have facilitated the development of transnational corporations (TNCs). Such companies have a geocentric orientation and attempt to be responsive to both national markets, while simultaneously seeking global coordination. In this paper we propose that such companies need to reconsider the traditional balance sheet approach to expatriate compensation. Accordingly, we suggest that transnational corporations need to engage in a paradigm shift from the notion of expatriate compensation to transpatriate compensation. We suggest that such a paradigm shift is necessary in light of increasing globalization of markets and operations.

Citation

Phillips, L. and Fox, M.A. (2003), "Compensation strategy in transnational corporations", Management Decision, Vol. 41 No. 5, pp. 465-476. https://doi.org/10.1108/00251740310479313