This paper concerns the transfer of human resource management (HRM) practices by multinational companies (MNCs) to their overseas subsidiaries. It investigates how factors originating from the cultural and institutional framework of the host country impact on this transfer. Using data collected from MNC subsidiaries located in Greece and local Greek firms, we examine the degree to which several HRM practices in MNC subsidiaries resemble local practices. Our empirical findings indicate that subsidiaries have adapted their HRM practices to a considerable extent, although some practices are more localised than others. Specifically, practices that do not fit well with Greek culture or are in contrast to employee regulations show a low level of transfer. On the other hand, our interviews revealed that significant cultural changes are underway and that the institutional environment is gradually getting more relaxed, leaving more room to manoeuvre for MNCs.

We propose solutions to two recurring problems in cross-national research: response style differences and language bias. In order to do so, we conduct a methodological comparison of two different response formats-rating and ranking. For rating, we assess the effect of changing the commonly used 5-point Likert scales to 7-point Likert scales. For ranking, we evaluate the validity of presenting respondents with short scenarios for which they need to rank their top 3 solutions. Our results -based on two studies of 1965 undergraduate and 1714 MBA students in 16 different countries -confirm our hypotheses that both solutions reduce response and language bias, but show that ranking generally is a superior solution. These findings allow researchers to have greater confidence in the validity of crossnational differences if these response formats are used, instead of the more traditional 5point Likert scales. In addition, our findings have several practical implications for multinational corporations, relating to issues such as selection interviews, performance appraisals, and cross-cultural training.ß

One of the central questions in the literature on MNCs is the extent to which their subsidiaries act and behave as local firms (local isomorphism) versus the extent to which their practices resemble those of the parent company or some other global standard (internal consistency). Drawing on the resource-based view and resource-dependency theory, this paper aims to provide an insight into the interplay of several corporate-level organizational factors that affect the transfer of HRM practices across borders. Data collected from 80 European and US multinationals with subsidiaries in Greece are used to test specific hypotheses. Our results indicate that the level of importance attached to HRM by the MNC's top management and international experience have the highest explanatory power for the transfer of HRM practices, while international competitive strategy, informal control and the presence of expatriates also have a marginally significant influence.

This article investigates whether Human Resource Management (HRM) in Greece is maintaining its national character or whether it is converging towards a model that potentially clashes with the country’s traditional societal values. This issue fits in the wider convergence–divergence debate that has been the concern of many cross-cultural researchers. Using data collected from Greek firms and subsidiaries of multinationals (MNCs) located in Greece, we compare the two groups on specific HRM practices. The aim is to show how HRM practices of Greek firms differ from those of MNCs subsidiaries and examine the extent and the way these HRM practices reflect Greek national culture. Our empirical results indicate that HRM practices in Greek firms reflect national culture to a great extent. Moreover, they imply that in some areas MNC subsidiaries have realized a considerable degree of adaptation, embracing practices that are in line with the Greek cultural environment.

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