The attractiveness of emerging market MNCs as employers of European and American talent workers

Abstract

Purpose -Upon entering developed markets, emerging market multinational corporations (EMNCs) from China and India must compete with both host companies and other developed nation MNCs to attract and recruit necessary local talent. The purpose of this paper is to examine to what extent EMNC firms will be perceived as less attractive employers than their developed nation counterparts due to a perceived liability of origin bias. Major demographic and psychographic factors that may affect this bias will also be identified. Design/methodology/approach -Seven hypotheses were tested on a total of 626 German, French and American respondents. Participants were randomly presented identical job descriptions from four hypothetical MNCs (American, European, Indian and Chinese) and were asked to evaluate the perceived attractiveness of working for, as well as their intent to pursue employment with, the offering firm. Findings -Using hierarchical linear regression testing, combined with analysis of variance testing, EMNCs were found to have significantly lower organizational attractiveness than equivalent European or American owned MNCs. Mixed results were found for the various hypotheses based on the moderator variables.Research limitations/implications -Because the study included three distinct sub-groups, supplemental analyses controlling for possible variances between the sub-groups themselves are included. This multicultural study is one of the first to address the human perspective of EMNC outward foreign direct investment (OFDI) by identifying the existence of a potential liability of origin bias toward emerging market firms manifested by potential developed market job applicants. Furthermore, this study is one of the first to examine the influence of applicant age, professional status, gender and nationality with respect to the differences in the perceived level of organizational attractiveness between emerging market and developed nation firms. Originality/value -This paper extends the literature in three important research areas. First, an extension to the literature on the highly relevant topic of OFDI by Chinese and Indian firms is made. Second, traditional research in the field of organizational attractiveness is further extended by combining it with the timely subject of Chinese and Indian OFDI into developed markets. Finally, this study extends international business literature by studying the influence of demographic and psychographic moderators on the perceived level of organizational attractiveness between emerging market and developed nation firms.

Global staffing and control in emerging multinational corporations and their subsidiaries in developed countries

“…It is well recognised in the international management literature that knowledge transfer and control and coordination functions of such expatriate assignments are not mutually exclusive (Bonache and Brewster, 2001;Boyle, Nicholas and Mitchell, 2016). Correspondingly, the findings do not concur with the argument that EMNCs enter developed countries because they are interested in acquiring local talent (Khanna and Palepu, 2006;Luo and Tung, 2007) or that they rely more on the use of host-country nationals to manage their subsidiaries in developed countries (Alkire, 2014). The findings also disagree with the debate on EMNCs questioning their use of PCNs due to the "tightening up" of border controls in developed nations (Wilkinson et al, 2014, p. 840).…”

The influence of images on organizational attractiveness: comparing Chinese, Russian and US companies in Germany

“…as Western applicants have the relevant local knowledge and familiarity that EMNEs much desire (Alkire, 2014;Thite, Wilkinson, & Shah, 2012). Second, EMNEs typically lack managerial, technological, and marketing capabilities, which are important to properly address host country nationals in developed markets (Barnard, 2010;Cuervo-Cazurra & Genc, 2008).…”

The relevance of socially responsible blue-collar human resource management

“…Employer prestige is an important evaluative component of one’s employment because being affiliated with a prestigious organization enhances an employee’s social status and boosts his/her self-esteem due to organizational identification (Mael and Ashforth, 1992; Smidts et al , 2001). In this respect, the logic applies that the more employees are concerned with enhancing their social status via employment, the more they will value being associated with a prestigious employer (Alkire, 2014; Highhouse et al , 2007).…”