Re-visiting ‘country of origin’ effects on HRM in multinational corporations

Abstract

This article builds on the existing literature on ‘country of origin’ effects on the management of human resources in multinational corporations (MNCs). It adopts a relational perspective in order to examine how actors at different levels within multinationals develop identities, and how these interact. Exploring the different sets of relations present within MNCs highlights two major areas in which the existing literature is deficient: first, a more integrated perspective on country effects within MNCs is dependent on an understanding of the potential for firms to strategically segment HR policies; second, more consideration needs to be given to the potential separation, either full or partial, of country of ownership and country of management effects, in order to reach a more realistic analysis of how national business systems shape international HRM.

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

“…One key factor is the institutional environment in which an organisation is founded and developed, which impacts on how managerial processes and structures evolve within the organisation and is likely to be reflected in the managerial processes and structures of the firm as it expands internationally (Almond, 2011;Edwards & Ferner, 2002). In line with other 'Latin' business systems, Brazil is a society with a high-power distance (Posthuma, Bisseling, & Sobral, 2011).…”

“…Such 'dominance effects' are reflective of the fact that at any point in time, countries 'in dominant positions have frequently evolved methods of organising production or the division of labour which have invited emulation and interest' (Smith & Meiksins, 1995, pp. 255 and 256; see also Almond, 2011;Pudelko & Harzing, 2007). Specifically, those MNEs from economies, which are higher up the hierarchy, may be perceived to have superior HR policies that may improve managerial practice in the host (Chang et al, 2009).…”

Crossing the streams: HRM in multinational enterprises and comparative HRM

“…As previously noted, it is rare that studies in HRM in MNEs place equal emphasis on MNE headquarters/home-country issues and subsidiary/host-country issues (Ferner, 2009;McDonnell et al, 2014). The field would benefit from more parallel examinations of home-and host-country effects (see Almond, 2011 for a critical review of country-of-origin effects). The added challenge of data access notwithstanding, such studies are much better placed to draw conclusions about HRM convergence/divergence in ways that can combine and leverage the explanations offered by each of the two streams.…”

Human Resource Management in Multinational Enterprises: Evidence From a Late Industrializing Economy

“…Much of this scholarship demonstrates that there are country of origin effects in the HRM policies and practices of MNEs (e.g. Almond 2011;Almond et al 2005;Bjorkman et al 2007;Ferner 1997;Lavelle et al 2010;Noorderhaven and Harzing 2003). The argument is made that the greater the cultural or institutional distance between the HQ and subsidiaries, the less likely a MNE will seek to transfer practices across operations.…”