The localization of top management positions is an important objective for
many Transnational Corporations (TNCs). Despite its importance, there is li
ttle systematic discussion of how the localization process should be manage
d. Based on a review of related literature and in-depth interviews with six
TNCs in the PRC, we developed a three-stage model of the localization proc
ess. In this article, we use that model to describe the challenges that TNC
s face when localizing top management positions in the People's Republic of
China.