High performance work practices and organizational performance in Pakistan

Purpose – Research on the relationship between high-performance workplace practices (HPWPs) and organizational performance has largely focussed on western settings, limiting the knowledge of how these systems influence performance in other countries, including Pakistan. Universalistic assumptions underpin the HPWP paradigm; to examine the validity of these assumptions, the purpose of this paper is to study the links between HPWP and performance in Pakistan, a country with different cultural norms and institutional settings to those in which most research has been conducted. Design/methodology/approach – The authors draw on a unique survey of 392 establishment managers in the banking, pharmaceutical and information technology sectors. The authors include managers of foreign-owned multinational subsidiaries and domestic firms to ensure the sample represents firms in Pakistan. Findings – The authors find that some individual HPWPs (recruitment and training) are associated in a statistically significant way with lower labour turnover, higher productivity and higher financial performance. Employee involvement is associated with lower labour turnover and higher labour productivity. Compensation is associated with higher financial performance. None is linked to higher labour turnover, lower productivity or lower financial performance in a statistically significant way. Performance appraisal was not statistically significantly associated with any of the three outcome variables. Originality/value – The results provide some relatively strong support for universalistic assumptions, but also highlight the need for future research to examine the variable links of some HPWPs and the lack of any association for the performance appraisal measure. Keywords Employee productivity, Employee involvement, Human resource management, Employee turnover Paper type Research pape

The debt crisis and the adoption of Asset-Light and Fee-Orientated (ALFO) arrangements at Marriott: 1980-1995

Purpose: This case study examines Marriott Corporation's large and successful spinoff between 1993 and 1995 and the concomitant adoption of a corporate ALFO strategy enabled by the transfer of assets and debt between the two entities. As an example of corporate restructuring, it involves changing ownership, operational structure, or business activities within a corporation in order to improve shareholder performance. Methods: Key directional changes in Marriott's history that have changed the structure of the business is used to examine the spinoff and ALFO strategy adaptation. Results: Marriot have been characterised by a small number of significant and foresightful innovations. There was a great deal of importance attached to the company’s move away from food service and towards accommodation in the future. During the early stages of the company’s existence, the company was located near Marriott’s Bethesda headquarters and was headed by the founder's oldest son. There is no doubt that these investments have been probing in nature in the recent past, but they are significant in terms of scale and commitment in the future. Implications: Marriott's success can be attributed to the fact that the company has a flexible corporate strategy that focuses on high growth and high yield business opportunities, as well as the willingness to dispose of assets that don't provide this outcome. As a result of this focus, the company was able to grow globally from the 1990s onwards. Ultimately, it can be said that the company's success can be attributed to the fact that it has adapted appropriately and successfully to changing operational and industry realities over the course of many decades, especially as exigencies in the asset and debt markets rendered the portfolio structure it had developed over so many decades unsustainable

Does e-HRM improve labour productivity? A study of commercial bank workplaces in Pakistan

Purpose: Drawing on data from a unique, large-scale survey, we examine the links between e-HRM and perceived labour productivity both directly and through the mediating role of HR service quality amongst commercial-bank workplaces in Pakistan, many of which have introduced e-HRM. Design: We use partial least squares structural equation modelling to examine the direct links between e-HRM and productivity as well as the mediated links between e-HRM, perceived HR service quality and productivity. Findings: We show that e-HRM practices have a statistically significant, positive effect on managers’ perceptions of labour productivity. We also reveal that e-HRM practices influence the quality of HR service, and that the quality of HR services fully mediates the relationship between e-HRM practices and managers’ perceptions of labour productivity. Practical implications: Our results highlight the importance of designing and implementing e-HRM systems so that they support organization workflow and enable workers to carry out a range of HR and non-HR activities more efficiently. In particular, this study suggests that managers should focus on how e-HRM impacts on HR service quality in a holistic way, as this is the ‘route’ via which e-HRM can improve labour productivity. Originality: Existing research has demonstrated a link between e-HRM and the quality of HR services; however, these studies downplay the potential impact of e-HRM on labour productivity, a key organizational outcome and one that e-HRM aims to improve. The study contributes to the HRM literature by identifying how e-HRM can improve labour productivity by enhancing the perceived HR service quality. The study, therefore, provides the basis for future theory developments in this area

Linking e-hrm practices and organizational outcomes: empirical analysis of line manager’s perception

Purpose - This study seeks to explore the value creation opportunities offered by e-HRM practices. The purpose of this paper is to examine the impact of operational, relational, and transformational e-HRM practices on organizational outcomes by incorporating HRM service quality as an intermediary value creating factor. Design/methodology/approach –Line managers of commercial banks that adopted operational, relational, and transformational e-HRM were asked to participate in the study. The study used exploratory factor analysis for scale validation. PLS-SEM was used to validate and test the conceptual model. Findings - Drawing on data from a large and new survey, the study found that operational, relational, and transformational e-HRM practices have a significant impact on HR service quality and employee productivity. HRM service quality mediates the relationship between e-HRM practices and organizational outcomes. Implications - The study focuses on the relevance of e-HRM practices for improving organizational effectiveness, leading to competitive advantage for the firm. It is one of the pioneering studies that explore the link between e-HRM practices and organizational outcomes by analyzing the perception of South Asian line managers from the banking sector. Organizations from developing and developed countries can extract benefits by designing and implementing e-HRM systems in a way that supports their workflow

Converging HRM practices? A comparison of high performance work system practices in MNC subsidiaries and domestic firms in Pakistan

Purpose Existing work on convergence/divergence amongst HRM practices in MNCs and local firms mainly focuses on Europe and the US. Limited research examines these organizations in Pakistan, hindering our understanding of what policies MNCs are likely to adopt there as well as the extent of any differences between HRM in MNC subsidiaries and local firms. We examine the similarities and differences between the HRM practices of MNC subsidiaries and domestic firms to assess if there is evidence for convergence or divergence. Design/methodology/approach We targeted MNC subsidiaries and domestically owned firms working in the banking, information technology and pharmaceutical sectors in Pakistan. These sectors have enjoyed a steady inflow of FDI and have a sizeable number of MNC subsidiaries. Out of 1081 companies, some 392 participated in a face-to-face survey (response rate of 36.4%). We ran a series of binary logistic regression models to test the hypothesized relationships between HR practices and nationality of ownership. Findings We reveal that a small minority of both types of firm use some practices, such as high compensation contingent on performance and performance review, appraisal and career development. However, domestic firms use some practices, such as extensive training, performance appraisals and performance-related pay significantly less than their multinational counterparts. We argue that these differences reflect institutional influences in Pakistan as well as a potential opportunity for local firms to change their HRM practices. In other areas, such as recruitment and employee involvement, there are no differences between the two groups. Originality/value We deepen our understanding of the types of HR practices that local companies in an emerging economy are likely to adopt as well as those that they are unlikely to adopt. Existing research has tended to downplay 1) HRM in Pakistan and 2) the different use of individual HRM practices amongst MNC subsidiaries and local firms. Our research reveals that some companies in Pakistan have sophisticated HRM practices in place in some areas; however, MNC subsidiaries make greater use of some HR practices, reflecting different cultural norms between the two groups

Criação de inovação local por subsidiárias estrangeiras a partir de vantagens específicas do ambiente subnacional

Objetivo - O estudo objetiva examinar os efeitos dos fatores do ambiente subnacional brasileiro – a eficiência do ambiente competitivo subnacional e o embeddedness relacional em cada localidade subnacional - na criação de inovação local em subsidiárias estrangeiras. Método – A abordagem é quantitativa e a pesquisa baseia-se em dados primários coletados por meio de uma survey com 152 subsidiárias estrangeiras localizadas em treze Estados do Brasil e em dados secundários do World Bank Enterprise Surveys. Os dados são analisados por regressão linear múltipla. Principais resultados - Os resultados mostram que existe uma associação positiva e significante entre o ambiente competitivo subnacional e inovação local das subsidiárias. Entretanto, não é observada uma associação significativa entre o embeddedness externo subnacional e a inovação local. Além disso, os resultados mostram que as empresas que entram por meio de aquisições estão mais associadas à inovação local. Relevância/Originalidade - O estudo procura complementar o debate sobre o efeito do ambiente subnacional na inovação local das subsidiárias tendo como contexto o Brasil. A análise em nível subnacional considera a heterogeneidade institucional subnacional e revela variações que poderiam ser desconsideradas por uma análise de nível nacional. Contribuições teóricas/metodológicas: Embora existam indícios do impacto do ambiente institucional na estratégia e inovação, este estudo no âmbito brasileiro avança em dois pontos. Primeiro, os estudos existentes analisam mercados desenvolvidos e mercados emergentes, porém esses últimos de forma pontual e numa realidade asiática, que apresenta uma considerável diferença do mercado latino americano e brasileiro, destacando-se as peculiaridades do ambiente subnacional brasileiro. Segundo, contribui para os estudos de Geografia Econômica reforçando que cada ambiente subnacional tem suas particularidades, conforme demonstrado na natureza das questões subnacionais no Brasil. Contribuições sociais / para a gestão: Em termos gerenciais, o estudo chama a atenção para a importância do conhecimento da dinâmica competitiva subnacional quanto à participação da economia informal e estende implicações para políticas públicas.info:eu-repo/semantics/publishedVersio

Subsidiary classification, and configuration with a developmental context : evidence from foreign multinational enterprises in New Zealand : a thesis presented in partial fulfilment of the requirements for the degree of Doctor Philosophy in Strategic Management at Massey University, New Zealand

Research has produced a range of subsidiary classifications indicating various ways in which subsidiaries can be distinguished. There are, however, still concerns that many of the critical contingencies remain unexplored. It is, for example, argued that the existing subsidiary types are either multinational enterprise (MNE) strategy-based or process-based, rather than based on the subsidiary’s own strategy. The frameworks are: two-dimensional (Enright & Subramanian, 2007; Morschett, Schramm-Klein, & Zentes, 2015); lack theoretical basis; and, their dimensions are arbitrary (Schmid, 2004; Schmid, Dzedek, & Lehrer, 2014). They are also disconnected to the previous frameworks (Hoffman, 1994). MNE management structure is one such contingency. Subsidiary studies mostly focus on the corporate headquarters (CHQ) as the subsidiary developmental driver, but ignore the varying developmental influences. Namely, the structures (i.e., lateral or formal) placed on subsidiaries. Most of the ignored contingencies are contextual (Enright & Subramanian, 2007; Meyer, Mudambi, & Narula, 2011). Little is known about how various subsidiaries configure with these contexts. Putting subsidiary development to the fore, these issues are integrated and two research objectives are set. One issue concerns developing a subsidiary classification, and the other concerns subsidiary and context configuration. This thesis’s empirical context is foreign subsidiaries in New Zealand. Data from 429 subsidiaries are obtained. Cluster analysis and variance analysis are the key techniques used. Grounded in the resource-based view, resource dependence theory, and network theory, an overarching subsidiary classification framework is produced. The framework follows a contingency approach and draws on critical dimensions from the various subsidiary literature streams. From this framework a new three-part subsidiary developmental classification (entrepreneurial, constrained autonomous, constrained) is produced. By applying a configurational approach, various linkages are explored between the three subsidiary types and their developmental contexts. A number of developmental contingencies are identified; such as MNE management structures, expatriation, internationalisation motives, and internal isolation. Key findings include the lateral structure as the one under which subsidiaries develop the most, and the CHQ, the least. Individual developmental paths for the three subsidiary types are proposed. Theoretical implications are subsequently made, mainly identifying factors through which subsidiaries can develop resources and form internal resource dependencies. The novelty of the findings is discussed and subsidiary management and public policy implications are made. Keywords: MNE Strategy, Subsidiary Strategy, Subsidiary Development, Subsidiary Classification, Developmental Context, MNE Management Structure

Family business in the Arabian Gulf region

The purpose of the paper is to provide some insights into the importance of family business in the transition of the Gulf Cooperation Council (GCC) region into a diversified, modern economic region. This is a viewpoint paper, bringing together recent relevant academic and industry literature combined with the authors\u27 observations of emerging regional trends. The authors find that family businesses have been an anchor of private sector economic development in the GCC. Family businesses across the region reflect both the challenges and opportunity of the context. Recent social and economic changes present challenges to the historical ways of operation, and yet they also present opportunities. This paper is intended to be thought provoking and insightful for those in the region and those with an interest in the region. The unique social, historical and economic characteristics of the region are discussed along with their impact on family businesses