International HRM: National Business Systems, Organizational Politics and the International Division of Labour in MNCs

In this paper we address a key issue that dominates internal ional HRM research, namely the global-local question. The question concerns how multinationals can or should balance the pressures to develop globally standardized policies with the pressures to be responsive lo the peculiarities of the local context In our view, three important conceptual weaknesses have restricted research progress in this held; the inadequate conceptualization of national effects, which results in culture being used as an unsatisfactory \u27catch all\u27 for national differences; the lack of attention to the influence of internal organizational polities; and the absence of focus on the internal division of labour within MNCs. We discuss the ways in which these weaknesses can be addressed and the implications of these alternative concepts

Knowledge and HRM practice transfer in emerging economies: the case of Japanese joint ventures in Indonesia

This thesis investigates the mechanisms used to transfer the management practices of multinational corporations (MNCs) to an emerging market economy (EME) context. Examining an MNC’s ownership and control of its subsidiaries in a setting of institutional resistance, this research focuses on the objectives and processes of the MNC’s diffusion of human resource management and industrial relations (HRM-IR) “best practice” to standardise subsidiaries’ practices, control their management and influence policy developments. The case involves a dominant MNC headquarters (HQ) and low-power subsidiary actors, with implications for cross-border management practice transfer, coordinated actors and conflicts of interest. This study seeks to enhance our understanding of the HQ’s systematic circumvention and manipulation of hostcountry regulatory barriers, particularly those barriers designed to protect local systems, policies and practices from foreign management’s direct control of human resources in Indonesian subsidiaries. HQ actors find ways of influencing, standardising and changing subsidiaries’ HRM norms, policies and practices. This thesis explores the power resources, motivations and strategies of MNC actors at inter- and intra-organisational levels in 12 Indonesian automotive manufacturing firms that have Japanese (co-)ownership or are part of the Japanese producer’s supply chain. Three levels of institutional analysis offer a deeper understanding of the mechanisms of cross-border transfer relating to power, politics and conflicts in MNCs: (1) HQ actors’ strategies to control foreign subsidiaries’ management practices, (2) subsidiary actors’ strategies to maximise the benefits of cooperation with MNC’s global networks, and (3) the business group’s proactive influence of labour market institutions. The findings are relevant to an understanding of the emergence of high-quality production networks in EMEs characterised by “weak” and immature institutions, as well as to the transferability of dominant work, employment and organisation systems

Dilemma Theory and Path to Cross-Cultural HRM Synergy within Multinational Firms

Multinational companies (MNCs) have become the most significant players in world trade, with the world’s 100 largest MNCs now controlling approximately 20 per cent of global foreign assets. However, MNCs as they grow out of their national borders into foreign countries face a problem managing people because they often find themselves in a dilemma as to how to find equilibrium with regard to parent company’s HRM policies and practices and local environmental factors in the location of the subsidiary. In the face of the complexities and the problems associated with the dilemma, MNCs attempt to build synergy between the two extremes for an option beneficial to both subsidiary and parent company. The purpose of this paper is to assess how the central HRM problem is managed along the path to synergy building. The paper uses the dilemma theory as the main tool and predominantly popular and academic literature on MNCs HRM transfers for the assessment. Manor contributions are the development of cycle of cross-border HRM dilemma; cross-border HRM transfer framework; and path to cross-border HRM synergy building. A key finding is that parent company has greater influence in the trade-off thereby advancing, to a greater extent, the global integration option of the dilemma. Key Words: Cross-border HRM; Dilemma theory; Host country; HRM synergy; Multinational compan

Cultural, legal and societal differences between Germany, Singapore, Thailand And Indonesia that influence the transfer of HR policies

The aims of the paper are to firstly to investigate cultural and societal differences between Germany, Singapore, Thailand and Indonesia and secondly to compare the effect of perceived cultural differences between managers on the transfer of human resource policies between German Fortune Global 500 industrial companies from -electrical, mechanical and chemical- industries and local Asian plants. The analysis of twenty four in depth interviews with Human Resource directors and line managers contrasts cultural differences regarding policy or practices. Convergence is confirmed on a policy level with crossvergence taking place on a process level. The role of the subsidiary HR director as a cultural translator and regional team player is confirmed

A Review of Two Decades of Research on Language in International Management (1997 - 2022) - Supplemental Material

This research reviews over two decades of research on language within international management. This comprehensive review codes and summarizes 263 articles, highlighting the impact of language in various strategic areas of management: language policy; HRM and organizational behavior; internationalization; HQ-subsidiary relationship; knowledge sharing; corporate reporting and governance; and mergers and acquisitions (M&A) and inter-firm strategic collaboration. This study also highlights two major needs within the discipline (internal vs. external focus of language and level of analysis – individual, group and organizational), and addressed the call for a broader future research agenda

How does successive inpatriation contribute to subsidiary capability building and subsidiary evolution? An organizational knowledge creation perspective

Intra-company knowledge transfer is a key source of competitive advantage for multinational companies (MNCs) and this knowledge is usually embedded in individuals. Drawing on organizational knowledge creation theory, we explore how inpatriation contributes to knowledge transfer and, in turn, subsidiary performance. Inpatriation involves the international assignment of employees from an MNC’s foreign subsidiary to its headquarters. Despite increasing attention to the role of inpatriation, we lack a clear understanding of whether and how inpatriates provide value to their subsidiaries after returning from headquarters. Through a qualitative case study of Japanese MNCs, we demonstrate the process through which inpatriates’ knowledge transfer contributes to subsidiary capability building and subsidiary evolution over time, and explain why successive inpatriation is thus critical to enhance subsidiary performance. Our theoretical model highlights the value of inpatriates as knowledge agents, reveals the process through which inpatriates transfer knowledge between HQ and subsidiaries, and provides a more nuanced understanding of the micro-foundations of intra-MNC knowledge transfer processes. Based on these findings, we argue that inpatriation is not merely a staffing method that is complementary to expatriation, but a key practice in its own right to support subsidiaries’ growth and performance

How does successive inpatriation contribute to subsidiary capability building and subsidiary evolution? An organizational knowledge creation perspective

Intra-company knowledge transfer is a key source of competitive advantage for multinational companies (MNCs) and this knowledge is usually embedded in individuals. Drawing on organizational knowledge creation theory, we explore how inpatriation contributes to knowledge transfer and, in turn, subsidiary performance. Inpatriation involves the international assignment of employees from an MNC’s foreign subsidiary to its headquarters. Despite increasing attention to the role of inpatriation, we lack a clear understanding of whether and how inpatriates provide value to their subsidiaries after returning from headquarters. Through a qualitative case study of Japanese MNCs, we demonstrate the process through which inpatriates’ knowledge transfer contributes to subsidiary capability building and subsidiary evolution over time, and explain why successive inpatriation is thus critical to enhance subsidiary performance. Our theoretical model highlights the value of inpatriates as knowledge agents, reveals the process through which inpatriates transfer knowledge between HQ and subsidiaries, and provides a more nuanced understanding of the micro-foundations of intra-MNC knowledge transfer processes. Based on these findings, we argue that inpatriation is not merely a staffing method that is complementary to expatriation, but a key practice in its own right to support subsidiaries’ growth and performance

Influences on Affiliate HRM Systems in Japanese MNCs in Southeast Asia

Using data from 160 Asian affiliates of American and Japanese MNCs, this paper explores the determinants of whether MNCs transfer their parent company HRM systems overseas or adopt local practices. We find that demographic predictor variables which have often been found in previous studies to predict similarity are relatively unimportant while perceived HRM competence of the MNC is an important determinant of HRM transfer

Ethics and taxation : a cross-national comparison of UK and Turkish firms

This paper investigates responses to tax related ethical issues facing busines