One obvious parallel The complex nature of the local situation and the fact that firms’ localization policies are rather general makes localization ‘‘a delicate issue’’ and one that‘‘can easily go wrong’’ (Harding, 1998: 1). Harding (1998) tenders the opinion that issues of trust and transparency require attention and points out that many MNCs encounter problems with local managers who lack the international experience of their expatriate colleagues. Deng (1998) also points out that while local managers often lack information about financial controls, or broader issues of corporate culture and marketing, they are far more effective in certain positions, such as sales, where their use of guanxi as a business tool in China given them a ‘‘leg up’’ on expatriate managers (e.g., Chen, 1994; Luo & Chen, 1997; Tsui & Farh, 1997; Xin & Pearce, 1996). Thus, localization may also lower the costs of generating new sales, in addition to lowering total salary costs. However, prior empirical research has clearly not focused on those factors or processes that are related to the overall success of localization. In the absence of empirical work on this topic, we must draw on indirectly related literature and case studies in order to identify plausible antecedents of a successful localization program.to localization in the privatesector is the interactive (e.g., MacNamara & Weeks, 1982; Mapes, 1993, 1996) and iterative (Quere, 1994) learning process. This is because the heart of successful localization lies in the effective education and retention of local managers. Technical procedures as well as issues related to corporate culture need to be learned, and local modifications made (Zhan, 1999). Even more so, developing an effective local manager who can creatively synthesize these simultaneous requirements of adaptation and standardization requires creativity and sophistication from both locals and expatriates. This can only be achieved through a mutual process of give and take.
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