The transfer and diffusion of HRM practices within MNCs: lessons learned and future research directions

Chiang, Flora F. T.; Lemański, Michał K.; Birtch, Thomas A.

doi:10.1080/09585192.2016.1246461

Cited by 58 publications

(77 citation statements)

References 107 publications

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“…It should be noted that the international management and international HRM literature uses the terms "transfer" and "diffusion" interchangeably (see for example, Chiang, Lemanski & Birtch, 2017;Colakoglu, et al, 2016). For instance, transferability is defined as "the ability to transfer HRM practices originated from the parent-company to its subsidiaries" (Liu, 2004, p. 501).…”

Section: How Do the Liabilities Of Country-of-origin And Foreignness mentioning

confidence: 99%

The transfer of HRM practices from emerging Indian IT MNEs to their subsidiaries in Australia: The MNE diamond model

Patel

Sinha

Bhanugopan

et al. 2018

Journal of Business Research

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There is a growing body of literature on multinational enterprises (MNEs) and the extent to which they diffuse or transfer their human resource management (HRM) practices in foreign subsidiaries. Much of the research, however, examines the HRM practices of multinational enterprises from developed countries operating in developing countries rather than vice versa. This study investigates the transfer of HRM practices in Indian information technology MNEs with subsidiaries in Australia and draws on data collected through interviews with senior subsidiary managers. The findings indicate that contrary to what is suggested in the existing literature, Indian IT MNEs do not operate using a polycentric HR model but behave in a manner similar to Western MNEs. They adopt a hybridisation approach using headquarter(HQ)-local practices that merge home-country policies with locally responsive HRM practices to suit their Australian subsidiary context. This article discusses the implications of this finding for theory and practice in EMNEs.

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Section: How Do the Liabilities Of Country-of-origin And Foreignness mentioning

confidence: 99%

The transfer of HRM practices from emerging Indian IT MNEs to their subsidiaries in Australia: The MNE diamond model

Patel

Sinha

Bhanugopan

et al. 2018

Journal of Business Research

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“…All MNCs are conditioned by the institutions in their country of origin which feeds through into the extent and nature of standardization of HR practices across borders (Chiang et al, ; Edwards, Sánchez‐Mangas, Jalette, Lavelle, & Minbaeva, ). The extent to which the home‐country institutional environment influences MNCs depends, however, on the kind of institutions in which they are embedded.…”

Section: Mapping the Impact Of Home‐ And Host‐country Institutions Onmentioning

confidence: 99%

“…Where EMNCs engage in direct or indirect arbitrage there is potential for this to transform their strategies and practices, with potentially profound implications for their domestic operations. However, evidence from AMNCs indicates that this will not always be the case; new strategies and practices being implemented in the home country may have to be adapted to fit with existing institutions (Chiang et al, ; Edwards, Almond, Clark, Colling, & Ferner, ). This suggests that there is a need to understand the range of ways in which the actions of EMNCs may produce a feed‐back loop and cause institutions to change or not, to which we now turn.…”

Section: Mapping the Impact Of Home‐ And Host‐country Institutions Onmentioning

confidence: 99%

“…There is a large literature on the ways in which multinational companies (MNCs) manage their workforces, including such issues as whether and how they diffuse practices across their international operations (e.g., Chiang, Lemański, & Birtch, ), their impact on labor standards (e.g., Locke, Kochan, Romis, & Qin, ), and the nature of “global leadership” (Mendenhall et al, ). While this literature has been enlightening in many ways, there are notable weaknesses.…”

Section: Introductionmentioning

confidence: 99%

“…However, while institutional studies have been used to study developed country MNCs, it scarcely features in analysis of EMNCs' HRM practices (Chiang et al, , p. 248); at best, there are some indications of how institutions might condition the way that EMNCs manage their international workforces (e.g., Zhu & Jack, ). We lack a framework that allows us to analyze the ways in which institutions in emerging economies affect the way MNCs from these countries manage their staff and give rise to distinctive strategies in HR.…”

Section: Introductionmentioning

confidence: 99%

See 2 more Smart Citations

Mapping the impact of home‐ and host‐country institutions on human resource management in emerging market multinational companies: A conceptual framework

Edwards

Schnyder

Fortwengel

2019

Thunderbird Intl Bus Rev

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JEL codes: F21, F23, O15While there is a growing literature concerned with multinational companies from emerging markets (EMNCs), it does not contain a robust conception of how institutions shape human resource (HR) practices in such firms. We contribute to filling this gap through developing a framework of how institutions create a range of constraints and opportunities for EMNCs. Specifically, our framework contains three key elements of how MNCs from emerging markets interact with institutions: EMNCs develop approaches that to some extent reflect the perceived strengths and weaknesses of the institutions in the home country (institutional conditioning); the strategies of actors in EMNCs can overcome the weaknesses of the home country by drawing on institutions in other countries (institutional arbitrage); and the actions of EMNCs can reinforce, or create pressures for change in, the institutional context in the countries in which they operate (institutional change/consolidation). By mapping this set of strategies of EMNCs, we contribute to a fuller understanding of the relationship between institutions and HR practices, and we outline how the rise of EMNCs reshapes the global landscape by adding new kinds of firm behavior to capitalist diversity. K E Y W O R D Scomparative institutional analysis, emerging market multinationals, emerging markets, human resource management, institutions effect (e.g., Ferner, 1997), but there are significant gaps in our

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

Beletskiy

Fey

2020

Human Resource Management

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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.

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The transfer and diffusion of HRM practices within MNCs: lessons learned and future research directions

Cited by 58 publications

References 107 publications

The transfer of HRM practices from emerging Indian IT MNEs to their subsidiaries in Australia: The MNE diamond model

The transfer of HRM practices from emerging Indian IT MNEs to their subsidiaries in Australia: The MNE diamond model

Mapping the impact of home‐ and host‐country institutions on human resource management in emerging market multinational companies: A conceptual framework

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

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