HR ambidexterity and absorptive capacities: A paradox‐based approach to HRM capabilities and practice adoption in MNC subsidiaries

Abstract

This article examines the relationship between the capabilities of HR departments and the level of adoption of corporate HRM practices in MNC subsidiaries. To explain this relationship, we leverage paradox theorizing, still rare but gaining increasing attention in HRM research, and integrate the studies of practice transfer, organizational ambidexterity, and absorptive capacity. First, we establish the conceptual linkages between the implementation and internalization dimensions of practice adoption and the potential and realized absorptive capacities of HR departments.Second, we re-define the operational and strategic activities of HR departments in terms of the learning paradox of exploitation and exploration. Third, we introduce the concept of HR ambidexterity to describe HR departments that possess high levels of capabilities in both operational (exploitative) and strategic (explorative) taskdomains. Finally, we hypothesize that ambidextrous HR departments are more adept at adopting corporate HRM practices. An analysis of the survey data from 105 foreign subsidiaries of 12 MNCs supports this single hypothesis. The main contribution of this research is in leveraging paradox theorizing to explain the nature of HRM capabilities and their role in the adoption of HRM practices.

Configuring subsidiary performance in ambidextrous networks: The role of top management team diversity and autonomy

“…Most previous studies that investigated the link between the various notions of ambidexterity and performance have focused on the firm level of analysis, but comparatively few have focused on the subunit level such as subsidiaries (Beletskiy & Fey, 2020; Christofi et al, 2021; Junni et al, 2013; Reilly & Scott, 2016), which have become increasingly crucial for MNEs to maintain and expand their competitive advantages (Egelhoff, 2020; Rugman & Verbeke, 2001). It is also important to understand the effects of ambidexterity at different levels of the organization since there is no reason to assume a priori that this effect would be equal in direction, kind, or magnitude at each level of the organization.…”

“…Human resources management plays a special role in any relationship between organizational ambidexterity and optimal performance (Beletskiy & Fey, 2020; Junni, Sarala, Tarba, Liu, & Cooper, 2015; Malik, Pereira, & Tarba, 2019; Stokes et al, 2019). For instance, Chebbi et al (2017) show the importance of culture in how managers deal with ambidexterity in the decision‐making process.…”

“…The subsidiary's top management team will then be charged with implementing a global campaign within a local host country context to maximize its impact (Hill & Birkinshaw, 2014). On the other hand, a subsidiary must develop and explore the local network of suppliers and buyers, as well as governmental institutions and universities in the host country, that provide skills‐based performance‐enhancing inputs to management practices, and to access local knowledge networks (Beletskiy & Fey, 2020; Chandra & Wilkinson, 2017; Cheng & Huang, 2020).…”

“…and buyers, as well as governmental institutions and universities in the host country, that provide skills-based performance-enhancing inputs to management practices, and to access local knowledge networks (Beletskiy & Fey, 2020;Chandra & Wilkinson, 2017;Cheng & Huang, 2020).…”

Surviving Covid‐19: The Role of Human Resource Managers in Shaping Organizational Responses to Societal Paradox

“…Paradox, characterized as ‘contradictory yet interrelated elements embedded in organizing processes’ (Smith and Lewis, 2011, p. 389), is of growing importance within both management (Berti and Simpson, 2021; Hahn and Knight, 2021; Jarzabkowski et al ., 2019; Pradies et al ., 2021b) and human resource (HR) scholarship (Beletskiy and Fey, 2020). An HR focus is common in paradox research (see Aust, Brandl and Keegan, 2015; Ehnert, 2014; Francis and Keegan, 2020; Pradies et al ., 2021b), because HR managers ‘have a core role in boundary work between different stakeholders with contradictory objectives’ (Jarzabkowski et al ., 2019, p. 127).…”