Is internationalization associated with investments in HRM? A study of entrepreneurial firms in emerging markets

Khavul, Susanna; Benson, George S.; Datta, Deepak K.

doi:10.1002/hrm.20367

Cited by 61 publications

(65 citation statements)

References 111 publications

(127 reference statements)

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“…Rather, the diffusion from some of the Western hosts to the HQ was indirect through the consultancy firms as opposed to directly through the MNE. Second, our findings seem at odds with previous research that suggests that EM-MNEs apply different HR practices in developed country subsidiaries and developing country subsidiaries (Khavul et al, 2010). We have specifically put this question to interviewees, but not a single interviewee hinted at such a distinction.…”

Section: Discussioncontrasting

confidence: 66%

“…Given that previous research suggested that emerging market MNEs apply different HR practices in developed country subsidiaries and developing country subsidiaries (Khavul, Benson, & Datta, 2010) and given that there may be differences in terms of forward diffusion and reverse diffusion between developed country subsidiaries and developing country subsidiaries, our research design purposively includes interviews with both a developed country subsidiary and with a developing country subsidiary for each company. The key characteristics of interviewed subsidiaries are presented in Table 2.…”

Section: Methodsmentioning

confidence: 99%

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Performance management practices within emerging market multinational enterprises: the case of Brazilian multinationals

Mellahi

Frynas

Collings

2015

The International Journal of Human Resource Management

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This study advances our understanding of HRM within emerging market multinational enterprises (EM-MNEs) by examining the extent to, and mechanisms by, which Brazilian MNEs standardise or localise their performance management (PM) policies and practices, and the factors that influence their design and implementation. We explored these issues through qualitative case studies of three Brazilian MNEs. The analysis of interview data reveals a strong tendency for Brazilian MNEs to centralise and standardise their PM policies and practices. The key finding of this paper is that PM practices within Brazilian MNEs are not based on indigenous Brazilian practices, but, rather, are heavily influenced by global best practices. The findings are at odds with previous research, which suggests that EM-MNEs apply different HR practices in developed country subsidiaries and developing country subsidiaries. Also, contrary to expectations, our results indicate that institutional distance does not have a significant influence on the adaptation of PM practices at subsidiary level.

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Section: Discussioncontrasting

confidence: 66%

Section: Methodsmentioning

confidence: 99%

Performance management practices within emerging market multinational enterprises: the case of Brazilian multinationals

Mellahi

Frynas

Collings

2015

The International Journal of Human Resource Management

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“…As a result, HRM practices of MNEs will be influenced by their home country national business systems and tend to exhibit distinctive internationalization paths (Ferner and Quintanilla 1998;Ngo et al 1998;Gamble 2003). Tymon et al (2010) and Khavul et al (2010) indicate that the vestiges of British colonial rule still remain in India and the evolution of the Indian HRM function has mirrored that of Britain, shifting from an emphasis on personnel towards a more strategic HR role but with a greater emphasis on human resource development (Budhwar and Varma 2010). Cooke and Saini (2010) suggest that Indian managers mirror their Western counterparts in their selection of HRM practices that promote innovation in organisations, with practices including training and development, performance appraisals, staff suggestion schemes.…”

Section: Country Of Origin Effect and The African Contextmentioning

confidence: 99%

A comparison of international HRM practices by Indian and European MNEs: evidence from Africa

Gomes

Sahadev

Glaister

et al. 2014

The International Journal of Human Resource Management

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By comparing the HRM practices in Indian and European MNE subsidiaries located in four of the Southern African Development Community countries, this paper tests the relevance of the country of origin effect and analyses the strength of institutional and firm level influences. Examining data from 865 MNE subsidiaries obtained from the World Bank enterprise survey data, the paper finds that Indian MNEs have higher labour costs in relation to total sales than their European counterparts, that Indian MNEs make more use of temporary labour than their European counterparts, that Indian MNEs invest in less training than their European counterparts. No support is found for the hypothesis that Indian MNEs have a lower ratio of skilled workers in comparison to European-owned subsidiaries. The study shows that country of origin effects are weakened if they are not consistent with host country ideology and that as economies evolve so too do their expectations of HR policy and practices.3

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“…A mixture of developments such as rapid globalization, the rise of emerging markets, technological developments, constant change and the emergence of intellectual capital as a key sustainable competitive advantage requires the HR function to be ever more strategic and global in its role, outlook and approach (Briscoe, Schuler & Tarique, 2011;Chung, Bozkurt & Sparrow, 2012;Khavul, Benson & Dutta, 2010). In such a context, corporate HR plays a prominent role in the management of the global workforce in MNCs (Farndale, Scullion & Sparrow, 2010a;Farndale, Paauwe, Morris et al, 2010b).…”

Section: Introductionmentioning

confidence: 99%

Global HR Roles and Factors Influencing Their Development: Evidence From Emerging Indian IT Services Multinationals

Thite

Budhwar

Wilkinson

2014

Human Resource Management

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The rapid growth of emerging markets' multinational companies (MNCs) is a recent phenomenon and as such their nature and structure of key management processes, functions and roles need further examination. While an abundance of low cost labor is the starting point of competitive advantage for many of the emerging markets' MNCs, it is the optimum configuration of people, processes and technology that defines how they leverage their intangible resources. Based on case studies of four Indian IT services MNCs, involving 51 in-depth interviews of business and human resource (HR) leaders at the corporate and subsidiary levels, we identify five key HR roles, namely, strategic business partner, guardian of culture, builder of global workforce and capabilities, champion of processes, and facilitator of employee development via empowerment and learning. The analysis also highlights that the HR function in Indian IT services MNCs faces several challenges in consolidating the early gains of internationalization, such as a lack of decentralized decision making, developing a global mindset, localization of workforce and developing a global leadership pipeline. Based on our exploratory findings, we propose a framework outlining the global HR roles pursued by emerging IT services MNCs, the factors influencing them, and the challenges facing their HR function for future research.

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Is internationalization associated with investments in HRM? A study of entrepreneurial firms in emerging markets

Abstract: This study investigates how internationalization is associated with investing in

Cited by 61 publications

References 111 publications

Performance management practices within emerging market multinational enterprises: the case of Brazilian multinationals

Performance management practices within emerging market multinational enterprises: the case of Brazilian multinationals

A comparison of international HRM practices by Indian and European MNEs: evidence from Africa

Global HR Roles and Factors Influencing Their Development: Evidence From Emerging Indian IT Services Multinationals

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