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Article
Publication date: 25 July 2013

Yi‐Ying Chang, Adam Smale and Seng‐Su Tsang

The purpose of this paper is to use a diachronic analysis to explore the influence of country of origin effect and country of management effect on the adoption of human resource…

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Abstract

Purpose

The purpose of this paper is to use a diachronic analysis to explore the influence of country of origin effect and country of management effect on the adoption of human resource management (HRM) practices at different stages.

Design/methodology/approach

The methodology starts with an intensive literature review to establish an analytical framework by bringing country of origin and country of management effects on the HRM transfers. By using a longitudinal qualitative research design, a total of 164 interviews from four British subsidiaries of four Taiwanese multinationals were conducted to explore the change over time during the HRM transfer processes over a five‐year period.

Findings

The results provide evidence of the paradox as a result of country of origin effect and country of management effect on the adoption of HRM practices over time.

Research limitations/implications

It is problematic to conclude absolutely regarding the convergence or divergence of HRM practices. This is due to HRM practices being in a constant state of flux between global integration and local adaptation during the transfer process.

Originality/value

This is the first empirical study to examine the impacts of country of origin effect and country of management effect on the HRM transfers from emerging multinationals in the advanced economy from a diachronic perspective.

Details

Cross Cultural Management: An International Journal, vol. 20 no. 3
Type: Research Article
ISSN: 1352-7606

Keywords

Article
Publication date: 8 February 2008

Adam Smale

The purpose of this paper is to review the literature on HRM in MNCs from a knowledge transfer perspective, to identify some of the key weaknesses in extant research and to…

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Abstract

Purpose

The purpose of this paper is to review the literature on HRM in MNCs from a knowledge transfer perspective, to identify some of the key weaknesses in extant research and to outline a future research agenda.

Design/methodology/approach

In this paper key contributions to the literature on HRM in MNCs are reviewed and discussed in connection with the knowledge transfer literature. The review and discussion culminate in the presentation of an agenda for future research.

Findings

The paper finds that, by viewing global HRM integration in MNCs as a process of knowledge transfer, three weaknesses in the extant literature are identified: inadequate consideration of HRM's knowledge characteristics at different levels within the organisation – the “what”; insufficient attention paid to the organisational mechanisms through which HRM is transferred – the “how”; and a lack of rigour in assessing when HRM transfer can be viewed as successful – the “when”.

Originality/value

In viewing global HRM integration as a process of knowledge transfer, the paper extends the HRM‐knowledge link and provides an alternative point of departure from which to study HRM in MNCs. In highlighting some of the weaknesses in extant research and in proposing a research agenda, it is also hoped that this paper can assist other scholars in making incremental improvements to a field reportedly in need of further theoretical development.

Details

Personnel Review, vol. 37 no. 2
Type: Research Article
ISSN: 0048-3486

Keywords

Article
Publication date: 3 April 2018

Nana Yaw Oppong

The paper aims to trace the challenges that multinational companies (MNCs) face as they grow out of their national borders into foreign countries and how they attempt to transfer

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Abstract

Purpose

The paper aims to trace the challenges that multinational companies (MNCs) face as they grow out of their national borders into foreign countries and how they attempt to transfer human resource management (HRM) policies and practices across their subsidiaries for a best-fit HRM model.

Design/methodology/approach

The paper uses the dilemma theory (involving two opposing values which doing one without the other creates a disadvantage but both cannot be done together) as the main analytical tool and reviews scholarly literature on MNCs’ HRM transfers for the assessment of the transfer challenges.

Findings

It is found that MNCs face a dilemma as to how to find best-fit between home-country HRM requirements and host-country demands. In the face of this dilemma, MNCs attempt to build synergy between home-country requirements and host-country demands for a best-fit HRM that is beneficial to both the parent company and their foreign subsidiaries. Despite the best-fit HRM practices to diffuse the tension, parent company has greater influence in the final synergy product which is the trade-off between home-country HRM label and host-country contextual demands, thereby advancing the dominant HRM option of the dilemma.

Practical implications

MNCs should be aware of the possible challenges as they internationalise and should equally be aware that though they may build a synergy (a blend of workable headquarters and subsidiary HRM), the final product will continue to favour headquarters’ HRM policies and practices.

Originality/value

The paper generates theoretical implications into the issues and challenges that arise with HRM transfers within multinational firms by examining how the dilemma theory sheds light on the transfer process and challenges from the dominant-contextual tension till the fight for best-fit HRM. It also contributes to the development of cycle of cross-border HRM dilemma, cross-border HRM transfer framework and Synergy-Dominant theory.

Article
Publication date: 1 September 2004

Wenchuan Liu

Drawing on a range of literature, this paper develops a theoretical model of the cross‐national transfer of HRM practices in multinational corporations (MNCs). This model…

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Abstract

Drawing on a range of literature, this paper develops a theoretical model of the cross‐national transfer of HRM practices in multinational corporations (MNCs). This model integrates the significant research on transferability, transfer mechanisms, effects of transfer, and reverse transfer to produce a comprehensive analytical framework. A three‐fold analysis of transferability is presented to include national, company and HRM practice level. The transfer mechanisms are categorized into direct and indirect methods. The analysis of reverse transfer is not only a complement to the forward transfer but also an important part of the integrated model. The model reflects the complexity of cross‐national transfer HRM practices in MNCs. The propositions presented and suggestions for future research serve to aid further practical studies.

Details

International Journal of Manpower, vol. 25 no. 6
Type: Research Article
ISSN: 0143-7720

Keywords

Article
Publication date: 29 April 2020

Taeyoung Yoo

For knowledge transfer in multinational organizations, knowledge management studies draw on diverse practices, such as employees’ language proficiency or environments, such as…

Abstract

Purpose

For knowledge transfer in multinational organizations, knowledge management studies draw on diverse practices, such as employees’ language proficiency or environments, such as cultural contexts, but pay little attention to the practical role of external agents, i.e. translators. The purpose of this study is to analyze how translators facilitate knowledge transfer, using their professional identity in relation to employees’ cultural competence and organizations’ Human Resource Management (HRM) practices.

Design/methodology/approach

This study examines survey data on 182 translators and 206 HRM managers who work in multinational organizations. Regarding common method bias, comparing people with different views and inclusion of control variables collected from archival sources will help the empirical results to be robust.

Findings

This study finds that translators’ business-oriented professional identities complement employees’ cultural competence and eventually promote knowledge transfer. Furthermore, translators’ business-oriented professional identities are enhanced by organizations’ commitment-based HRM practices.

Originality/value

This study expands knowledge management studies by incorporating external agents into the analysis of knowledge transfer. Particularly for the language approach in knowledge management, the framework of this study sheds light on the critical dimension of translators’ professional identity for organizational goals. Practically, this study suggests that multinational organizations should design commitment-based HRM practices to motivate translators’ business-oriented identity for knowledge transfer.

Details

Journal of Knowledge Management, vol. 24 no. 4
Type: Research Article
ISSN: 1367-3270

Keywords

Article
Publication date: 1 December 2004

Paul Iles, Anita Ramgutty‐Wong and Maurice Yolles

Most discussions of knowledge, knowledge management and knowledge transfer, especially of human resource management (HRM) knowledge and its transfer, have failed to consider them…

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Abstract

Most discussions of knowledge, knowledge management and knowledge transfer, especially of human resource management (HRM) knowledge and its transfer, have failed to consider them in a cross‐cultural context. After a discussion of this issue, the paper analyses the migration or transfer of what is often claimed to be best practice in HRM from Western countries to developing, culturally different countries. It does this with specific reference to the case of HRM in Mauritius, especially in the Mauritian Civil Service, and uses this case not only to identify some of the limits to cross‐cultural knowledge management, but also to develop a more appropriate model of “knowledge migration” of HRM knowledge across cultures based on viable systems theory, including a future research agenda.

Details

Employee Relations, vol. 26 no. 6
Type: Research Article
ISSN: 0142-5455

Keywords

Article
Publication date: 24 August 2018

Desmond Tutu Ayentimi, John Burgess and Kantha Dayaram

This study aims to investigate whether the historical and institutional re-construction of Ghana support the transfer of human resource management (HRM) practices and if so, what…

Abstract

Purpose

This study aims to investigate whether the historical and institutional re-construction of Ghana support the transfer of human resource management (HRM) practices and if so, what local conditions support such transfer?

Design/methodology/approach

The paper draws from an exploratory qualitative study design by assimilating history, culture and institutions (social institutionalist perspective) to explore host-country factors and conditions supporting the transfer of HRM practices in a developing country context.

Findings

The study finds the colonial history, and the political and economic interests of Ghana to mimic best HRM policies and practices from its colonial masters and other advanced economies provided strong institutional support for the transfer of HRM practices.

Research limitations/implications

This paper complements the understanding of HRM practice transfer literature by highlighting the significance of host-country historical and institutional re-construction support in developing economies as key drivers for the diffusion of HRM practices.

Practical implications

By incorporating institutions, history and culture to form the underpinning social context, it offers a new perspective into how historical, cultural and colonial institutional legacies as entrenched social instruments facilitate HRM practice transfer in Sub-Saharan Africa.

Originality/value

The integration of institutions, history and culture (social institutionalist perspective) provide a wider understanding of factors that denote the effect of Ghanaian contextual distinctiveness as against the continued colonial institutional legacies (inheritance) supporting the transfer of HRM practices. This is the first study to consider how local institutions, culture and history of Ghana support the transfer of HRM practices to subsidiaries.

Details

Journal of Management History, vol. 24 no. 4
Type: Research Article
ISSN: 1751-1348

Keywords

Article
Publication date: 1 February 2005

Dana B. Minbaeva

The purpose of the paper is to determine and empirically examine the effect of human resource management (HRM) practices on knowledge transfer within multinational corporations.

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Abstract

Purpose

The purpose of the paper is to determine and empirically examine the effect of human resource management (HRM) practices on knowledge transfer within multinational corporations.

Design/methodology/approach

It is suggested that the employment of human resource practices, which affect absorptive capacity of knowledge receivers and support organizational learning environment, is positively related to the degree of knowledge transfer to the subsidiary. Moreover, the higher degree of knowledge transfer is expected when HRM practices are applied as an integrated system of interdependent practices. Hypotheses derived from these arguments are tested on the data from 92 subsidiaries of Danish multinational corporations (MNCs) located in 11 countries.

Findings

Results of the analysis indicated the existence of two groups of HRM practices conducive to knowledge transfer. The simultaneous effect of the first group of HRM practices consisting of “staffing”, “training”, “promotion”, “compensation” and “appraisal” on the degree of knowledge transfer was found to be positive and substantial. The hypothesis regarding the effect of corporate socialization mechanisms and flexible working practices (the second group of HRM practices) was not supported by the data. The analysis also indicated that some HRM practices have a complementary effect on the degree of knowledge transfer when they are applied as a system.

Research limitations/implications

While this study makes a contribution to our understanding of the relationship between HRM practices and knowledge transfer in the MNC, clearly, additional research is needed to develop this link further, which until now has been largely black‐boxed.

Originality/value

Makes a contribution to our understanding of the relationship of HRM practices and knowledge transfer in MNCs.

Details

Personnel Review, vol. 34 no. 1
Type: Research Article
ISSN: 0048-3486

Keywords

Article
Publication date: 1 September 2004

Barbara Myloni, Anne‐Wil K. Harzing and Hafiz Mirza

This paper concerns the transfer of human resource management (HRM) practices by multinational companies (MNCs) to their overseas subsidiaries. It investigates how factors…

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Abstract

This paper concerns the transfer of human resource management (HRM) practices by multinational companies (MNCs) to their overseas subsidiaries. It investigates how factors originating from the cultural and institutional framework of the host country impact on this transfer. Using data collected from MNC subsidiaries located in Greece and local Greek firms, we examine the degree to which several HRM practices in MNC subsidiaries resemble local practices. Our empirical findings indicate that subsidiaries have adapted their HRM practices to a considerable extent, although some practices are more localised than others. Specifically, practices that do not fit well with Greek culture or are in contrast to employee regulations show a low level of transfer. On the other hand, our interviews revealed that significant cultural changes are underway and that the institutional environment is gradually getting more relaxed, leaving more room to manoeuvre for MNCs.

Details

International Journal of Manpower, vol. 25 no. 6
Type: Research Article
ISSN: 0143-7720

Keywords

Article
Publication date: 7 August 2007

Raduan Che Rose and Naresh Kumar

The purpose of this research is to empirically examine the extent to which the Japanese‐style human resource management (HRM) model is being transferred to subsidiaries, given the…

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Abstract

Purpose

The purpose of this research is to empirically examine the extent to which the Japanese‐style human resource management (HRM) model is being transferred to subsidiaries, given the contextual characteristics of the Malaysian environment.

Design/methodology/approach

The transferability of Japanese‐style HRM is examined through an analysis of the policies and practices of 69 Japanese subsidiaries and focuses on the following specific areas of HRM: employment policies and practices, remuneration systems and career development policies and practices; and management strategies and workplace industrial relations practices.

Findings

Overall, the findings suggest that the key elements associated with the Japanese‐style HRM as described in most of the literature are either present to a very limited degree or completely absent. It seems clear that the transfer of the distinctive Japanese‐style HRM, and especially the “four pillars” is not a priority of management. To a certain extent, most companies seem uncomfortable with the characteristics of the local labor. However, the HRM policies and practices in the companies surveyed are not simply the result of the limitation of the local environment and resources; rather they are “opportunist” management strategies which, by taking account of these contextual limits, seek to control the subsidiaries' operations.

Originality/value

By confirming many of the findings of research on the HRM policies and practices of Japanese subsidiaries, especially in other developing countries and, to a certain extent, some developed countries, this study demonstrated that while “technical” elements (the hardware) of the Japanese model are readily being transferred, most of the HRM elements (the software) are adapted in significant, and not always subtle ways. Thus, the issue of the transfer of Japanese‐style HRM abroad in general and in Malaysia particularly is not so much a question of whether the Japanese want to transfer their distinctive policies and practices as of whether they need, or indeed are able, to do so. The findings of this study also demonstrate that what most Japanese subsidiaries achieve is a system of labor control – this is the essential purpose of the HRM practices under considerations: to make the production methods work and enable the company to make and sustain profit – and indeed what the Japanese have achieved and secured in Malaysia is a highly effective system of control (given local conditions).

Details

Cross Cultural Management: An International Journal, vol. 14 no. 3
Type: Research Article
ISSN: 1352-7606

Keywords

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