AbstractIn staffing their overseas operations, Japanese firms generally maintain a view that prime positions should be held by the home‐country personnel. Having thus decided not to follow the European or American pattern of overseas operations, Japanese firms continue to rely very heavily on their own managerial resources to run fast‐expanding operations abroad. However, contrary to a general impression that Japanese managers are adept at working in foreign environments, our study of Japanese subsidiaries in Hong Kong points out that the success rate of their expatriate assignments is not necessarily as high as the figures widely reported by studies conducted elsewhere. This article will attempt to determine the causes of problems related to managerial assignments abroad by examining the practices employed by Japanese firms in the selection and training of managers for overseas assignme