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This paper aims to conceptualise a framework of “transnational human resource management” (HRM) and to demonstrate the validity of the model.

Evidence is drawn from survey of 93 large Japanese multinational companies (MNCs). Data are analysed through descriptive statistics, hierarchical multiple regression analyses and mediation effect analyses.

The analysis reveals that the practices for normative and systems integration are associated with increasing levels of social capital and geocentric staffing, respectively, and the social capital and geocentric staffing fully mediate the relationship between normative and systems integration and transnationality.

The research extends the integration theory in international HRM and demonstrates the validity of our framework for transnational HRM. The authors also shed light on the reality of the integration aspects of international HRM in Japanese MNCs.

Examines human resource management (HRM) for successful Australian‐Malaysian joint ventures (JVs), on the basis of survey data and case studies. The findings suggest that each phase of JV development had its own pattern of HR practices. Three phases of development were distinguished – initiation, transitional, and maturational. The first phase involved selecting, recruiting and training a skilled workforce and formulating rudimentary human resource policies. Cultural differences were most marked in this phase. The second phase, after three years of operation, involved evolution of human resource policies better suited to local conditions, and more polycentric management staffing. The final phase, after six years of operation, saw the development of a distinctive human resources system, and the minimisation of cultural differences as an operational issue. In this phase there was also a move to more geocentric management staffing. Other HR issues discussed are changing roles and relationships between JV partners in the different phases of development, and factors for JV success in the context of Australian‐Malaysian JVs.

The purpose of this paper is to show how individuals perceive the quality of intercultural interactions at work in multinational subsidiaries and to address the question of what actually prevails in their accounts, i.e., “the dark side” or “the bright side.”

The authors report the findings from five subsidiaries located in Poland and interviews with 68 employees of these companies.

The “bright side” dominated the interviewees’ accounts. The phenomenon of high social identity complexity or common in-group identity can help explain the findings. The results also shed some new light on the associations between the context of subsidiaries and the perception of the quality of intercultural interactions.

The paper contributes to the literature on cultural diversity and intercultural interactions in multinational subsidiaries. As the “bright side” of interactions was emphasized in the interviews, it particularly supports positive cross-cultural scholarship studies. Yet the explorative research does not allow for a broader generalization of the results.

Managers of multinational corporations (MNCs) should do the following: shape the context of MNCs to influence the dynamics of intercultural interactions and the way they are seen by their employees; emphasize common in-group identity to help their employees to adopt more favorable attitudes toward intercultural interactions; look for individuals with multicultural identity who display more positive approaches to intercultural contacts; place emphasis on recruiting individuals fluent in the MNC’s functional language; offer language training for the staff; and recruit employees with significant needs for development who will perceive more opportunities in intercultural contacts.

The research demonstrates that the multicultural workplace of MNCs may be recognized by employees as activating the positive potential of the individuals and organizations that make up a society.

The accounts of intercultural interactions are analyzed to illuminate some significant foundations of how individuals perceive such interactions. The study provides a qualitative lens and highlights the positive approach to intercultural interactions. It may redress the imbalance in prior research and satisfy the need for positive cross-cultural scholarship.

The purpose of this paper is to examine the relationship of business strategies with executive staffing of multinational companies (MNCs).

Based on in-depth interviews conducted with top executives of 22 MNCs’, the authors identify important connections between international business strategies and staffing orientation. The authors used the qualitative research approach of building theory from interviews; thus, creating theoretical propositions from empirical evidence.

The authors find that when the pressure for global integration is high, MNCs use more parent-country national (PCNs) (ethnocentric staffing) as against the use of host-country managers (HCNs) (polycentric staffing) when this pressure is low. Additionally, MNCs using a global strategy are more likely to use an ethnocentric staffing approach, those using a multi-domestic strategy use a polycentric approach and firms using transnational strategy adopt a mix of ethnocentric and polycentric approaches.

Although the authors derive theoretical patterns based on rich qualitative data, their sample is relatively small and comprises mostly of French MNCs. Generalizability to a broader context is limited. However, the authors’ findings have critical implications for future research.

The authors’ findings provide critical managerial implications for MNCs in matching their HR strategies with business strategies. These are important for effective strategy implementation.

Although MNC staffing orientations have been studied for a long time, their relationship to international business strategies is still not clearly understood. The authors contribute to the literature by investigating the relationship between MNCs’ business strategy types with staffing orientations.

Forces associated with globalization have facilitated the development of transnational corporations (TNCs). Such companies have a geocentric orientation and attempt to be responsive to both national markets, while simultaneously seeking global coordination. In this paper we propose that such companies need to reconsider the traditional balance sheet approach to expatriate compensation. Accordingly, we suggest that transnational corporations need to engage in a paradigm shift from the notion of expatriate compensation to transpatriate compensation. We suggest that such a paradigm shift is necessary in light of increasing globalization of markets and operations.

This paper explores the empirical relationships between the global orientation of the top management team, geocentrism of the staffing and promotion system, and boundary spanning structures and processes with the individual outcome variables of employee commitment to, and excitement about, their job and organization in ten units of two highly diversified high-technology Japanese multinational corporations. The results from the study show that employee perceptions of the top management team’s global orientation, geocentrism, and boundary spanning structures and processes influence individual attitudes of employees in Japanese MNCs. The implications of these results for further research and managerial practice are discussed.

This paper aims to examine multinational companies’ (MNCs) international transfer strategies of German vocational education and training (VET) and examines the dynamics in the subsidiaries.

Methodologically, the study is based on expert interviews conducted in German headquarters. To complete the picture, the study also includes insights from expert interviews in subsidiaries in Mexico, India and China.

There is a mix of country-of-origin and geocentric strategic orientation. VET is “boiled down” and adapted in its contents, but headquarters and expats maintain the spirit of VET, i.e. its national agenda of technical hands-on competencies and pedagogical competencies. To achieve this MNCs introduce general guidelines. Convincing takes place by means of role models.

The effects in the emerging economies differ regionally; these regional differences are not the subject of this contribution.

VET transfer comprises the implementation of its core spirit which produces participatory and emancipatory dynamics.

Intercultural learning has to be sensitive to such dynamics.

The study contributes to research on international strategies of MNCs, focussing on skill development of the blue-collar study.

The literature on international staffing in multinational enterprises (MNEs) often focuses on staffing choices based on nationality categories (e.g. parent-country nationals, host-country nationals, third-country nationals) for key positions in subsidiaries when examining their impacts on subsidiary outcomes. Considering both nationality and international experience, the purpose of this paper is to suggest an integrative typology to identify and classify various types of traditional and alternative subsidiary staffing options and evaluate them in relation to social capital and knowledge flows across MNE organizations.

Based on a social capital view of MNEs, the authors propose a typology of subsidiary staffing options founded on the dimensions of nationality and the location of prior international experience of incumbents of key positions. Then traditional as well as alternative staffing options from the literature are identified and evaluated corresponding to each type of staffing option in the framework.

The typology identifies nine types of subsidiary staffing options. It includes and classifies the traditional and alternative staffing options, while highlighting types which need further research. The study also suggests impacts of the traditional and alternative staffing type on social capital and knowledge flows in MNEs.

The new typology identifies various types of subsidiary staffing options comprehensively and evaluates them systematically. HRM specialists can classify subsidiary managers based on the typology and examine which staffing option would be desirable given a specific subsidiary context. The research also provides novel insights on what needs to be considered to select and develop subsidiary managers who can build internal and external social capital in MNEs.

The 1990s literature portrays the corporate personnel/HR function as in decline due to the decentralisation and delayering of large organisations. As a result personnel’s presence on boards of directors and participation in the formation of corporate business and HR strategies cannot survive. This paper challenges this view arguing that strategies do not originate at main board of director level but at the CEO executive group level in most cases. Research has shown the personnel/HR function’s involvement at this level to be higher than on main boards. Other recent evidence has accorded personnel a higher strategic role in MNCs, especially regarding the staffing and development of an international cadre of managers. This evidence however supports the view that personnel’s corporate presence declined from the mid 1980s to the mid 1990s before picking up, whereas the paper’s argument favours a steady growth thesis from the early 1970s. Additionally the dominant perspective contains an overly top down view of strategy formation whereas this paper argues for a counter‐balancing bottom up influence on strategy formation.