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Senior management perception of strategic international human resource management effectiveness. The case of multinational companies performance in China

By Chanzi Bao


The intense competition arising from globalisation requires MNCs to manage their HRs\ud globally and strategically to become a source of competitive advantage. Hence, SIHRM\ud acknowledges the need to balance global integration and local responsiveness, together\ud with emphasising the importance of seeking strategic fit between HR policies and\ud business strategy, which in turn leads to superior firm performance. Furthermore, this\ud development also increased awareness and recognition of the role of senior managers\ud and cultural traditions. Therefore, the primary purpose of this research was to explore\ud the relationship between SIHRM effectiveness and firm performance as perceived by\ud senior management coupled with the influence from MNCs' headquarters and Chinese\ud cultural values. Consequently, the researcher selected a case study approach with a\ud triangulation data collection method through questionnaires and semi-structured\ud interviews undertaken in four selected subsidiaries of MNCs. The research findings\ud strengthened the theoretical foundations of several HRM models, together with\ud supporting Analoui's eight-parameter approach (1999) as a functional, coherent and\ud interlinked framework regarding the effectiveness of senior managers. In particular, this\ud research found that quality enhancement of products and service was the preferred and\ud adopted key business strategy amongst the studied MNCs. Whilst they are also seeking\ud to balance globalisation and localisation through reconciling control and adaptation\ud rather than satisfying one at the expense of the other, such that the trend is for Western\ud HR policies to be gradually accepted and internalised by the younger generation of the\ud Chinese managers. Finally, this research made several recommendations to foreign\ud MNCs operating in China

Topics: Perception, ; Effectiveness, ; Leadership, ; Firm performance, ; Chinese culture, ; HRM, ; MNCs; Multi-National Companies, ; China
Publisher: Department of Development and Economic Studies
Year: 2010
OAI identifier:
Provided by: Bradford Scholars

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