Do multinational subsidiaries demonstrate a convergence across their HRM practices in a less developed host-country?

2017 ◽  
Vol 39 (7) ◽  
pp. 1066-1082 ◽  
Author(s):  
Desmond Tutu Ayentimi ◽  
John Burgess ◽  
Kantha Dayaram

Purpose Using an institutionalist perspective, and through a case study analysis, the purpose of this paper is to examine whether subsidiaries of MNEs demonstrate a convergence across their HRM practices in a less developed host-country context. Design/methodology/approach This paper reports on an exploratory qualitative study involving five MNEs subsidiaries that operate in Ghana and originate from the UK, France, Germany, and India. The authors applied thematic and cross-case analysis techniques to explore similarities and differences in their HRM practices by drawing data from in-depth face-to-face interviews and document analyses. Findings Findings suggest that MNE subsidiaries demonstrate more convergence across their HRM practices as well as other HRM characteristics. Despite the similarities in their HRM practices, the evidence suggests that MNE subsidiaries’ HRM practices were similar to corporate headquarters HRM practices. It appears that the host-country has less influence in driving their convergence but rather the country-of-origin effect; competitive isomorphic pressure and global integration benefits were driving their convergence across their HRM practices. Originality/value This study makes a contribution to the convergence-divergence literature in the international HRM (IHRM) domain with specific focus on addressing an under-researched context of less developed host-countries. One of the puzzles in comparative and IHRM literature yet to be resolved is the convergence-divergence thesis of firms’ HRM practices.

2018 ◽  
Vol 47 (1) ◽  
pp. 2-21 ◽  
Author(s):  
Desmond Tutu Ayentimi ◽  
John Burgess ◽  
Kerry Brown

Purpose The purpose of this paper is to adopt the convergence-divergence perspective to examine the extent of similarities and differences in human resource management practices between multinational enterprise subsidiaries and local firms in Ghana. Design/methodology/approach This paper draws from multiple case study evidence using in-depth face-to-face interviews and document analysis. The data were analyzed in four stages using both thematic analysis and cross-case analysis techniques. Findings The authors found both convergence and divergence, however, the evidence points to more convergence and direction toward convergence between MNEs and local firms’ HRM practices. Research limitations/implications Even though there was evidence of cultural embeddedness within local firms in the adoption of certain HRM practices, the influence of national culture on HRM practice convergence between MNEs and local firms has been limited. Thus, the convergence-divergence debate through the lens of national culture may need to be re-examined. Practical implications The evidence of convergence and direction toward convergence tendencies within the context can be argued to be less underpinned by local isomorphism limited host-country influence. Practically, there is something to learn from indigenous Ghanaian organizations that can contribute to HRM advancement, the Ghanaian concept of annual durbars, annual or semi-annual gatherings to take stock of past activities and to award hard working staff, could provide the platform to strengthen the employer-employee relationship at the firm level. Originality/value This study fills an important contextual gap (a less developed country’s context) within the convergence-divergence debate and contributes to informing new knowledge of the convergence-divergence debate, which points to more convergence and direction toward convergence between MNEs and local firms’ HRM practices.


2019 ◽  
Vol 6 (2) ◽  
pp. 173-190
Author(s):  
Fethiye Tilbe

Bu makale, göçmen dövizi  akımlarında “düzensizlik” olarak ifade ettiğimiz, Türkiye’ye resmi kanallar dışında gönderilen enformel  göçmen dövizlerini, Birleşik Krallık’ta (özellikle Londra’da) yaşayan Türkiye kökenli göçmenler açısından incelemektedir. Her göçmen grubu, gerek ev sahibi ülkedeki düzenleyici çerçeve ve sosyo-ekonomik koşullar, gerek göçmen topluluğunun sosyo-kültürel değerleri tarafından belirlenen biçimde, farklı göçmen dövizi transfer biçimlerine eğilim sergilemektedir. Dolayısıyla farklı ülkelerdeki aynı kökenden göçmen toplulukları, ev sahibi ülkedeki dinamikler nedeniyle göçmen dövizlerinin formel ya da enformel (düzenli ya da düzensiz) gönderiminde farklılaşabilirken, aynı ülkedeki farklı ülke kökenli göçmen grupları da pek çok örüntünün etkisiyle farklı eğilim gösterebilmektedir. Nitel araştırma tasarımı kapsamında 27 göçmen ve 7 anahtar statüdeki katılımcıyla gerçekleştirilen yüz yüze görüşmelere dayalı olan bu çalışma, Birleşik Krallık’tan Türkiye’ye göçmen dövizi gönderimindeki düzensizlik olgusunu, her iki ülkenin sosyal, ekonomik ve kültürel dinamikleriyle ilişkilendirerek incelemeyi ve nedenlerini ortaya çıkarmayı amaç edinmektedir. Elde edilen sonuçlar, göçmenlik statüsü, gönderilen para miktar ve sıklığı ile geleneksel ilişki ağlarına olan güvenin yanında, Birleşik Krallık’taki sosyal yardım ve çalışma biçimine ilişkinin düzenleyici çerçevenin ve göçmenlerin sosyo-ekonomik durumlarının Türkiye’ye enformel göçmen dövizi gönderiminde temel belirleyici olduğunu ortaya koymaktadır.ABSTRACT IN ENGLISHA Qualitative Examination of Determinants of Remittances Sending Behaviour Among Immigrants from Turkey in the UKThis article examines the causes of irregularity in remittances flows from the United Kingdom (UK) to Turkey, from the perspective of migrants from Turkey living in the UK. Each group of migrants prefers different types of remittance sending methods, as determined by the regulatory framework and socio-economic conditions in the host country and the socio-cultural values of the migrant community. Therefore, migrant communities of the same origin in different countries may differ in using formal or informal sending methods of remittances due to the dynamics in the host country. Similarly, migrant groups of different nationalities in the same country may show different tendencies due to the influence of many patterns. Similarly, migrant groups of different nationalities in the same country may show different tendencies due to the influence of many patterns. This study aims to examine the phenomenon of irregularities in sending remittances by associating with the social, economic and cultural dynamics of both countries. For this purpose, face-to-face in-depth interviews were conducted with 27 immigrants and 7 key status participants by using qualitative research method. The obtained results reveal that the regulatory framework relating to social assistance and labour market in the UK, immigration status, the frequency and the amount of money sent and confidence in traditional relationship networks is the main determinants of informal money transfers to Turkey.


2020 ◽  
Vol 14 (4) ◽  
pp. 871-894
Author(s):  
Yishuai Yin

Purpose This paper aims to explore how institutional factors determine the adoption of employee empowerment practices by multinational enterprises (MNEs) subsidiaries in China. Design/methodology/approach This paper examines the effects of MNE subsidiaries’ external and internal institutional factors on the degree of employee empowerment practices adopted by these subsidiaries. Using hierarchical regression analysis, hypotheses were tested with a sample of 99 MNE subsidiaries operating in China. Findings The results show that both the informal institutions of the host country and the subsidiary’s characteristics play an important role in shaping the degree of empowerment practices adopted by MNE subsidiaries in China. Originality/value Employee empowerment practices have been increasingly used by MNEs to leverage human resources for organizational competitive advantage. Although a large body of work has studied a bundle of HRM practices as a whole adopted in MNE subsidiaries, there is a paucity of research on the specific empowerment practices in MNE subsidiaries. This research fills this important gap in the literature by investigating the institutional forces that influence the empowerment practices in MNE subsidiaries in China.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Shilin Yuan ◽  
Haiyang Chen ◽  
Wei Zhang

Purpose This paper aims to examine the impact of host country corruption on foreign direct investment (FDI) from China to developing countries in Africa. With the opposing arguments that corruption is detrimental to or instrumental in FDI and mixed empirical evidence, this paper contributes to the literature by providing new evidence on the issue. Additionally, little research has been done on the impact of corruption on FDI made by developing country multinationals to developing countries. This paper fills a void in this area. Design/methodology/approach Based on the published literature, as well as China and Africa contexts, the authors develop hypotheses that host countries with low corruption receive more FDI and resource-seeking investments weaken the relationship. The annual stock of Chinese FDI in 35 African countries, host country corruption data and other control variables from 2007 to 2015 are collected. Feasible generalized least squares models are used to test the hypotheses. Additional robustness tests are also conducted. Findings The findings support the hypotheses. Specifically, Chinese investors make more investments in host countries with low corruption except for resource-seeking investments in resource-rich host counties. The results are statistically significant accounting for various control variables. The results of the robustness tests show that the main findings are robust. Originality/value First, this study provides new evidence on the impact of corruption on FDI. Second, this study also fills a void by examining FDI from a developing country, China to other developing countries in Africa. Finally, this study also has a practical implication for Chinese multinationals investing in Africa.


2020 ◽  
Vol 24 (3) ◽  
pp. 517-532
Author(s):  
Rachel Parker-Strak ◽  
Liz Barnes ◽  
Rachel Studd ◽  
Stephen Doyle

PurposeThis research critically investigates product development in the context of fast fashion online retailers who are developing “own label” fashion clothing. With a focus upon inputs, outputs, planning and management in order to comprehensively map the interplay of people, processes and the procedures of the product development process adopted.Design/methodology/approachQualitative research method was employed. Face-to-face semi structured in depth interviews were conducted with key informants from market leading fast fashion online retailers in the UK.FindingsThe major findings of this research demonstrate the disruptions in the product development process in contemporary and challenging fashion retailing and a new “circular process” model more appropriate and specific to online fast fashion businesses is presented.Research limitations/implicationsThe research has implications for the emerging body of theory relating to fashion product development. The research is limited to UK online fashion retailers, although their operations are global.Practical implicationsThe findings from this study may be useful for apparel product development for retailers considering an online and fast fashion business model.Originality/valueThe emergent process model in this study may be used as a baseline for further studies to compare product development processes.


2018 ◽  
Vol 18 (4) ◽  
pp. 330-344 ◽  
Author(s):  
Trude Klevan ◽  
Bengt Karlsson ◽  
Lydia Turner ◽  
Nigel Short ◽  
Alec Grant

Purpose The purpose of this paper is to explore how sharing stories of being a mental health professional and academic, based more broadly on serendipity and searching in life, can serve as means for bridging and developing cross-cultural understandings and collaborative work. Design/methodology/approach This paper is a relational autoethnography based on face-to-face and written conversational dialogue between five mental health academics from the UK and Norway. Findings The very practice of writing this paper displays and serves the purpose of bridging people, cultures and understandings, at several levels, in the facilitation of new research and writing projects. Troubling traditional boundaries between “us” and “them, and the “knower” and the “known,” the writing is theoretically underpinned by Friendship as Method, situated in a New Materialist context. Originality/value Through its conversational descriptions and explorations the paper shows how doing relational autoethnography can be purposeful in developing cross-cultural understandings and work at both professional and personal levels. It also demonstrates how autoethnography as relational practice can be useful in the sharing of this methodology between people who are more and less familiar with it.


2017 ◽  
Vol 24 (3) ◽  
pp. 436-453 ◽  
Author(s):  
Charles Funk ◽  
Len J. Treviño

Purpose The purpose of this paper is to describe co-devolutionary processes of multinational enterprise (MNE)/emerging economy institutional relationships utilizing concepts from “old” institutional theory as well as the institutional aspects of socially constructed realities. Design/methodology/approach The authors develop a set of propositions that explore the new concept of a co-devolutionary relationship between MNEs and emerging economy institutions. Guided by prior research, the paper investigates MNE/emerging economy institutional co-devolution at the macro-(MNE home and host countries), meso-(MNE industry/host country regulative and normative institutions) and micro-(MNE and host country institutional actors) levels. Findings MNE/emerging economy institutional co-devolution occurs at the macro-level via negative public communications in the MNE’s home and host countries, at the meso-level via host country corruption and MNE adaptation, and at the micro-level via pressures for individual actors to cognitively “take for granted” emerging economy corruption, leading to MNE divestment and a reduction in new MNE investment. Research limitations/implications By characterizing co-devolutionary processes within MNE/emerging economy institutional relationships, the research augments co-evolutionary theory. It also assists in developing more accurate specification and measurement methods for the organizational co-evolution construct by using institutional theory’s foundational processes to discuss MNE/emerging economy institutional co-devolution. Practical implications The research suggests the use of enhanced regulation, bilateral investment treaties and MNE/local institution partnerships to stabilize MNE/emerging economy institutional relationships, leading to more robust progress in building emerging economy institutions. Originality/value The research posits that using the concepts of institutional theory as a foundation provides useful insights into the “stickiness” of institutional instability and corruption in emerging economies and into the resulting co-devolutionary MNE/emerging economy institutional relationships.


2017 ◽  
Vol 25 (4) ◽  
pp. 307-327 ◽  
Author(s):  
Yigang Pan

Purpose The study conceptualizes how firms’ strategic motives interact with the heterogeneity of host country institutional environments in determining the subsidiary ownership. The author hypothesizes and tests two interaction effects. The study found that firms with market-seeking motives are more affected by the heterogeneity of host country institutional environments, while firms with resource-seeking motives are less affected by the heterogeneity. The empirical findings are based on a sample of overseas subsidiaries reported in the annual reports of listed firms in China. Design/methodology/approach In this study, an empirical investigation was conducted using a sample of subsidiaries of listed firms in China. The data were compiled from 2012 annual reports of listed firms in China. The sample consists of 2,270 subsidiaries of these firms. Findings The study conceptualizes that firms with market-seeking motives and resource-seeking motives are influenced differently by the heterogeneity of host country institutional environments in determining their subsidiary ownership. We hypothesize two interaction effects. Firms with market-seeking motives are more subject to the heterogeneity of host country institutional environments in determining their FDI ownership level. In contrast, firms with resource-seeking motives are less subject to this heterogeneity. The findings largely supported the study’s hypotheses. Originality/value This study fills an important gap in the literature by incorporating the interaction between strategic motives and host country environments in the analysis of subsidiary ownership. The findings of the study suggest that firms with a market-seeking motive are more particular about the host country institutional environments. They will acquire a high level of ownership in host countries with attractive institutional environments. In contrast, firms with resource-seeking motive are less concerned with the host country institutional environments. Their decision on subsidiary ownership is less affected by the variance in host country institutional environments. This study adds to the stream of studies that have examined outward investments of firms from emerging economies, particularly the outward expansion of Chinese firms with different strategic motives.


2019 ◽  
Vol 27 (7) ◽  
pp. 4-6

Purpose The researchers wanted to find out a number of things. First, they wanted to assess the influence of strong unions on approaches to HRM. Second, they wanted to know if the strategic HR function had a positive effect on both person-centered and performance-centered HRM. Third, they tested the theory that the economic context had a significant influence on HRM practices. Companies in liberal market economies (LMEs), for example, were expected to adopt more performance-centered HRM, but for companies in coordinated market economies the reverse was likely to be true (CMEs). Design/methodology/approach Cristiani et al collected their data from the Cranet 2009 survey, the world’s largest comparative analysis of HRM practices. They sent out a questionnaire to senior managers responsible for HRM at private multinational companies. The authors sampled 3,406 firms across 14 countries. They placed six OECD nations in the LME group (Australia, Canada, Ireland, New Zealand, the UK, and the USA) and ten in the CME group (Austria, Belgium, Denmark, Finland, Germany, Japan, Norway, Sweden, Switzerland, and the Netherlands). Findings The data revealed that the strategic HR function had a positive effect on the adoption of both person-centered and performance-centered HRM. The study also demonstrated that a more powerful union presence encouraged the use of person-centered approaches, whereas it discouraged performance-centered ones. The data suggested that the variety of capitalism (VoC) moderated the relationships between the strategic HR function role and performance-centered HMR, but the same impact on person-centered approaches was not found. Originality/value Proof of the moderating effect of the VoC shows that HR professionals – especially at multinationals - need to align their practices with the larger context in which their company is operating. The most valuable finding for businesses was the impact of a strong union presence on which HRM practices were likely to be accepted, or rejected.


2020 ◽  
Vol 14 (3) ◽  
pp. 241-263
Author(s):  
Chensheng Xu ◽  
Feng Yao ◽  
Fan Zhang ◽  
Yonghong Wang

Purpose This study aims to investigate the influence of the Confucius Institute (CI) on outward foreign direct investment (OFDI) by China and its potential interaction with cultural difference and institutional quality in host countries. Design/methodology/approach In the empirical study, the gravity model is adopted as the benchmark to investigate the effects of CI on China's OFDI using the ordinary least squares or Poisson Pseudo Maximum Likelihood estimators. Panel data on China's OFDI from 2004 to 2015 are used. Cultural difference and institutional quality are included explicitly as control variables to examine the effects of CI on China's OFDI. Findings CI has a significant positive effect on China’s OFDI, and this effect depends on the cultural difference and institutional quality of the host country. The impact of CI on China’s OFDI is more prominent in host countries with a smaller cultural difference or lower institutional quality. Originality/value CI is a comprehensive platform for foreign cultural exchange and signifies the rebirth of Confucianism in China. The present study shows that CI can stimulate the growth of China’s OFDI, with implications for other Asian countries influenced by Confucianism. Based on the results of the study, strategies for “Going Global” and encouraging economic growth based on cultural exchange and the recognition of host country heterogeneities are proposed.


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