Abstract

Four concurrent changes created the era of globalization in the early 1990s: (1) the transition to a market economy in many former Soviet-bloc countries, (2) the liberalization of markets and increases in regional economic integration (e.g., NAFTA and the European Union), (3) the advances in technology and communication enabling firms of all sizes to compete globally and share information in real time, and (4) the increases in firms’ global reach through foreign direct investment, joint ventures, acquisitions, and the like (Dunning, 2009). Multinational companies (MNCs), in the era of globalization, need to strategically adapt, reconfigure, and acquire the resources needed for the ever-changing global marketplace. A critical resource for strategic advantage within MNCs is its human talent, which, like other resources, needs to be managed and leveraged effectively. Across subsidiaries and operations around the world, the right skills need to be in the right locations when needed. Cascio and Aguinis (2008, p. 135) noted that “the company of the future will call on talent and resources—especially intellectual capital—wherever they can be found around the globe.”