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This paper addresses and examines the relationship between management development (MD) and the perceived performance of foreign and domestic subsidiaries within multi–national corporations (MNCs). Specifically, by utilizing a unique matched unit and respondent database, the relationship between HR strategy, MD and the perceived performance of UK–owned MNCs with subsidiaries in Poland is examined. In this analysis, MD is constructed as a multi–faceted and multi–respondent index. The index comprises the use of “best practice” MD, MD ethos, as reported by HQ HR Directors and HR managers/specialists, and the perceived importance given to MD and perceived provision of MD as reported by line managers. The data are obtained from subsidiaries operating in both the UK and Poland. The results suggest that there are positive returns on MD. The link between the MD variables and perceived subsidiary performance is consistently positive and robust in all of the models examined. It is also found that a strategic fit between HR and organizational strategy is positive and significantly associated with perceived subsidiary performance. The relationship between MD and perceived subsidiary performance was particularly significant for subsidiaries in Poland. This most probably reflects both the country’s recent strong economic performance and its comparatively high level and quality of human capital. In other words, investment in MD in Poland appears to reap significant returns in terms of enhanced perceived subsidiary performance.
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