A comparison of international HRM practices by Indian and European MNEs: evidence from Africa (original) (raw)
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Indian IT MNEs and the transfer of HRM practices in their subsidiaries in developed countries
Academy of Management Proceedings, 2017
There is a growing literature on emerging market multinational enterprises and the extent to which they diffuse or transfer their HRM practices in foreign subsidiaries. Much of the research, however, has looked at understanding the HRM practices of MNEs from developed countries operating in developing countries. There is limited research and discussion regarding MNEs from emerging economies and the way they manage their HR practices in their subsidiaries in developed countries. This study investigates the transfer of HRM practices in Indian IT MNEs with subsidiaries in Australia and draws on data collected through multiple case studies with interviews from top directors and managers in their Australian subsidiaries. The findings reveal that emerging MNEs do not behave very differently from their Western counterparts and instead of relying on a polycentric HR model; they adopt a mix of ethnocentric and polycentric approach to international HRM that merges home-country policies with locally responsive practices.
Journal of International Business Studies, 2017
This study explores patterns of human resource management (HRM) practices across market economies, and between indigenous firms and foreign MNE subsidiary operations, offering a novel perspective on convergence and divergence. Applying institutional theorizing to improve our understanding of convergence/ divergence as a process and an outcome, data collected from nine countries at three points in time over a decade confirm that convergence and divergence occur to different extents in a non-linear fashion, and vary depending on the area of HRM practice observed. Patterns of adoption and convergence/ divergence are explained through the effect of institutional constraints, which vary between liberal and coordinated market economies, and between indigenous firms and foreign MNE subsidiaries. The study contributes a more graded conceptualization of convergence/ divergence, which reflects the complex dynamic reality of international business.
Human Resource Management Practices in Multinational Companies-A Case Study in Indian It Industry
Does the use of HRM practices by multinational companies (MNCs) reflect their national origins or are practices similar regardless of context? To the extent that practices are similar, is there any evidence of global best standards? The authors use the system, societal, and dominance framework to address these questions through analysis of 1,100 MNC subsidiaries in Canada, Ireland, Spain, and the United Kingdom. They argue that this framework offers a richer account than alternatives such as varieties of capitalism. The study moves beyond previous research by differentiating between system effects at the global level and dominance effects arising from the diffusion of practices from a dominant economy. It shows that both effects are present, as are some differences at the societal level. Results suggest that MNCs configure their HRM practices in response to all three forces rather than to some uniform global best practices or to their national institutional contexts.
Journal of International Management, 2016
Despite the extensive literature on the HRM systems and practices of MNCs from developed countries, there are serious gaps in our understanding of emerging countries multinationals HRM practices and systems at both home and host countries. We take a step towards enhancing our understanding on this issue by empirically exploring the similarities and differences of both HRM systems and practices of MNCs originating from South Africa, one of the BRICS countries, operating in Ghana. The study reveals that with the exception of compensation and industrial relation practices which are localised EMNCs HR systems and practices are mainly transferred to subsidiaries with minimal adaptation to contextual realities. Further research and practical implications are discussed.
A conceptual framework for international human resource management research in developing economies
This paper highlights the evolution and contribution of the institutional theory perspective to the study of human resource management (HRM) transfers between advanced economies and less developed economies owing to institutional dissimilarities. The paper seeks to explore the institutional differences between advanced economies (home) and less developed economies (host) through the lens of institutional theory and how such institutional differences constrain or provide opportunities for the transfer of HRM practices. We develop a conceptual framework through the lens of institutional theory to provide useful and comprehensive insight of factors or conditions to consider when transferring HRM practices from advanced economies to less developed economies where there are institutional dissimilarities. The framework offers a broad perspective of the three dimensions of institutional theory to help multinational enterprises evaluate and explore how the differences in institutional settings between home and host countries may create opportunities or constraints in HRM practice transfers. Key points 1 Our conceptual framework identifies those factors or conditions to consider when multinational enterprises transfer human resource management (HRM) practices from advanced economies to their subsidiaries in less developed economies. 2 The framework is based on institutional theory to evaluate and explore how the differences in institutional configurations between home and host countries may create opportunities or constraints in HRM practice transfers. 3 Institutional theory is significant for international HRM research in that it provides a strong foundation in hypothesizing at both home and host country levels with regards to institutional dissimilarities between developed and less developed countries.
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