Liability of Asianness? Global talent management challenges of Chinese,Japanese, and Korean multinationals

Within a short time, China, Japan, and Korea have produced worldwide leading multinational enterprises (MNEs). As they expand globally, these companies face major challenges in global talent management (GTM). This article provides a comparative analysis of the major GTM challenges MNEs from these countries experience and the underlying reasons thereof. Our comparative overview reveals similarities in ethnocentric staffing, traditional headquarters-driven organizational cultures, and home-country language policies. While there are striking differences in performance appraisal, reward and compensation, and promotion and career advancement, these GTM practices of Chinese, Japanese, and Korean MNEs are converging to Western style global best practices, though at different levels. Building on and enriching the convergence debate and the distance literature, we identify organizational and country characteristics that help better understand the reasons for these similarities and differences.     

The phenomenon of young talent management in Russia—A context‐embedded analysis

This article describes the particularities of young talent management (TM) in Russia and explains them through a context‐specific analysis. It adopts a multilevel perspective that acknowledges the relevance of context at three levels: the macro environment, the organizational, and the individual. Data were gathered through 46 interviews with HR managers and young talents from six Russian companies and six Russian subsidiaries of foreign multinational companies (MNCs) active in a variety of industries. Following the contextualization approach, this study offers important insights into the interplay between macro, organizational, and individual factors as well as their isolated or interrelated effects on TM. While multilevel contextualization provides the rationale behind certain TM practices and the particular focus on young talents in Russia, it also explains why Russian companies are inspired by global best TM practices. Thus, contextualization allows for explaining the coexistence of a specific environment and nonspecific (global best) TM practices. Important particularities are revealed also when compared to the results of TM studies in other emerging countries. The article contributes not only to the TM discussion, but also to the wider field of international human resource management and the international management literature regarding contextualization.     

Convergence and divergence of role stress experience of locally hired Japanese and non-Japanese host country staff: a qualitative study

This qualitative study examines the role stress (comprising of role ambiguity and role conflict) experienced by locally hired Japanese (LJ) and non-Japanese (NJ) staff in a sample of Japanese companies in Australia. Expatriates were also interviewed to gather information regarding the impact of cross-cultural understanding on role ambiguity and role conflict in their work relationships with LJ and NJ staff. Both LJ staff and NJ local staff experienced two types of role ambiguity, resulting from insufficient English competence and information shortage. NJ staff experienced two additional types of role ambiguity due to their lack of cultural understanding about Japan. LJ staff experienced two types of role conflict which were not experienced by NJ local staff. These were caused by their cultural understanding about Australia, and their Japanese cultural heritage and understanding of the society and organisational processes. This study shows that cultural understanding of one's host country and parent country could reduce role ambiguity. In addition, it was found that cultural understanding of one's host country and parent country results in role conflict. These findings suggest that cultural understanding could have positive and negative consequences on role stress. Theoretical and practical implications in the management of white-collar staff in overseas Japanese companies are discussed.     

The impact of culture on HRM styles and firm performance: evidence from Japanese parents,Japanese subsidiaries/joint ventures and South Asian local companies

This paper investigates national and organizational cultural influences among managers in three types of companies: Japanese companies in Japan, South Asian domestic companies and Japanese subsidiaries/joint ventures in South Asia. The findings suggest that a Japanese parent company's culture tends to have a much stronger influence with Japanese companies operating in Japan. Japanese parent company culture tends to have less influence than the South Asian national culture in shaping the HRM styles and practices in Japanese subsidiaries/joint ventures operating in South Asia. While some South Asian firms are in the initial stages of learning about participative HRM from foreign companies, most still tend to maintain their national culture and traditional ways in the operating systems of their organizations.     

Explicit and implicit corporate social responsibility: Differences in the approach to stakeholder engagement activities of U.S. and Japanese companies

This study uses the theoretical frameworks of institutional theory and comparative capitalism to demonstrate how cross‐cultural differences in national institutional frameworks are related to differences in the meaning and the nature of corporate social responsibility (CSR) and, as a result, how they create different incentives and opportunities for companies to engage in stakeholder management activities. More specifically, we draw upon the framework of “explicit” and “implicit” CSRs to investigate whether and how stakeholder management practices and programs differ between the United States and Japan. We first develop and validate a Stakeholder Engagement Activities (SEAs) scale, designed assess differences in the approach (explicit or implicit) that companies use to address a variety of common SEAs. Then we analyze data and present the results of surveys collected from 227 companies in the United States and Japan. We find that although the SEAs of American companies are characterized by strong “explicit CSR,” in contrast, the SEAs of Japanese companies exhibit strong “implicit CSR.” In the discussion that follows, we attribute these distinctions in the SEAs to differences in the configuration of political, economic, and market mechanisms in each country. The findings of this study contribute to a more nuanced understanding of the differences in prevailing CSR practices of American and Japanese companies than noted by previous researchers. From a practitioner's perspective, the findings of this study reveal that despite the global nature of CSR, stakeholder management practices are both interpreted and operationalized differently due to differences in national institutional frameworks.     

Managing human resources across cultures: a comparative analysis of practices in industrial enterprises in China and The Netherlands

Abstract Although researchers and practitioners have come up with many good ideas for improving the employment relationship, there is no evidence for universally applicable practices. Prior theoretical work and research in the area of (international) human resource management indicate that cultural and contextual constraints are responsible for the problematic nature of transference of practices. This study illustrates and explains the contextual as well as cultural boundaries through a direct comparison of practices as used in a matched sample of industrial companies in China (n=97) and The Netherlands (n=47). It is argued that differences in organizational structure, cultural values and labour regulations account for the variation between countries. The results show considerable differences between China and The Netherlands in the HRM practices of industrial enterprises. Also, the organizational culture of the companies studied varies between the two countries and the differences found are clearly in line with differences on the national cultural level.     

The management of labour in Japanese manufacturing plants in China

While there is now considerable scholarship concerning Japanese management practices in their overseas production operations in Europe and North America, little is known about Japanese investment in other parts of the world, especially in Asia. This paper draws on on-going research into the nature and operations of Japanese manufacturing investments in China. The paper focuses on interviews primarily with Chinese managers in twenty plants in three locations within China, to examine their personnel polices and practices, and draw from this their overall industrial relations strategies. The main findings were, first, that, despite claims of cultural similarity between China and Japan, personnel management practices were generally not transferred from Japan to the plants in China. Second, practices that may appear as Japanese inspired were often informed by local practices. Third, there was diversity in the forms of practices used, indicating neither sophistication nor a singular recipe of management methods. Thus, the paper seeks to challenge proponents of Japanization who claim, essentially, that Japanese management techniques are predicated on the construction of particular forms of social relations around work that allow sophisticated, and integrated, production-management systems to function. Instead, depending on a complex interrelation between location industry and the history of each plant, managers sought to use various local and 'universal' (generic to capitalism) strategies and practices to control and utilize labour.     

Patterns of power distribution in managerial decision making in Chinese and British industrial organizations

This article is one of three reports about the results of a Sino-British joint research project on managerial decision making in eleven Chinese companies and ten British companies. Forty managers and twenty trade union leaders from both manufacturing and service industries participated in the study. Data about decision-making patterns in eighteen different decision tasks in the organizations were collected. The results showed that there were interesting organizational and cultural differences in decision-making patterns in the two countries between manufacturing and service industries, between management and trade union groups, among short-, medium- and long-term decisions and across organizational levels. There were clear shifts of the decision-making power across organizational levels depending upon the type of decision tasks. A model of decision power shift was proposed in terms of the effects of organizational and cultural factors on patterns of organizational decision making. The implications of the decision power shift model to the management practice in the international context were highlighted.     

SIMPLY A QUESTION OF CULTURAL BARRIERS? THE SEARCH FOR NEW PERSPECTIVES IN THE TRANSFER OF JAPANESE MANAGEMENT PRACTICES

This paper discusses the transfer of management practices from parent companies in Japan into the operations of overseas subsidiaries of Japanese enterprises. the literature reviewed as well as the findings of case studies on human resource management practices in Japanese manufacturing firms in Australia suggest that key but rather high-cost practices associated with Japanese management including tenured employment, seniority-based remuneration and the provision of extensive welfare benefits are absent in overseas Japanese firms. On the other hand, relatively low-cost practices such as internal training, internal promotion and job rotation have been generally introduced into the firms researched. It appears, therefore, that the transfer of Japanese management practices is primarily affected by economic considerations rather than socio-cultural constraints as it has frequently been argued in the literature. Thus, the development of new theoretical frameworks explaining the transfer (or its absence) of Japanese management practices is essential. the paper takes a small step in this direction by suggesting that the overseas expansion of Japanese subcontracting networks including large-scale corporations as well as smaller size firms, produces conditions leading to the marginalization of segments of the local labour force and the emergence of the core-peripheral workforce dichotomy at the international level.     

Convergence and divergence issues in strategic management – Indonesia's experience with the Balanced Scorecard in HR management

Globalization pressures escalate competitiveness and, in response, global companies tend to adopt a handful of Western management practices. One of these is the Balanced Scorecard. However, empirical evidence assessing the transferability and effectiveness of Western best practices into Asian countries is scarce. In particular, empirical evidence relating to the effectiveness of Balanced Scorecard implementations is limited, as is the impact of Asian Balanced Scorecard contextual variables. This article contributes to this gap through the study of a Central Bank of Indonesia (BI) Balanced Scorecard implementation within a conceptual framework that explores convergence and divergence of global management practices. The lessons learned discuss how divergent factors such as national culture, leadership styles, organizational culture and human resource management practices can influence Asian context Balanced Scorecard implementations.     

Role stress reduction and cultural mediators in overseas Japanese companies

This qualitative exploratory study adopts a role theory perspective to examine the role of cultural mediators in reducing role stress experienced by staff in Japanese companies in Australia. The results reveal cultural mediators contribute to allay role stress that exists between Japanese expatriates and non-Japanese host country staff. Japanese expatriate managers are prone to rely on cultural mediators due to their boundary spanner role. Although cultural mediators are perceived to be effective in reducing role stress, our study uncovers potential negative consequences. Thus, reliance on cultural mediators must be cautiously managed.     

Organisation vs. culture: Japanese automotive transplants in the US

It has long been argued that the Japanese production organization is culture-bound and therefore not transferable to other countries. This article examines seven major Japanese automobile assembly plants and over 270 Japanese automotive parts suppliers in the US. The successful transfer of Japanese work and production organization in these ‘transplants’ suggests that Japanese production practices are organizational forms which can be uncoupled from Japanese culture and transferred to other countries.     

The moderating role of contextual factors on quality management practices

This study investigates how contextual factors influence the relationship between Quality Management (QM) practices and manufacturing performance. It contributes to the contingency theory of QM effectiveness. Drawing on the management literature, we differentiate two different groups of QM practices: Quality Exploitation and Quality Exploration. The analysis empirically investigates the internal fit with organizational structure and the external fit with environmental uncertainty on the relationship between Quality Exploration, Quality Exploitation, and operational performance. The data comes from a survey of 238 manufacturing plants in three industries across eight countries. Regression analyses show that both internal fit with the organizational structure and external fit with the environment affect performance. The findings also provide insights for managers on how to customize QM programs to achieve optimal performance benefits. In stable environments Quality Exploitation practices provide the best performance outcomes, while in a dynamic environment Quality Exploration practices with an organic organizational structure give the best results.     

Performance implications for the relationships among top management leadership,organizational culture,and appraisal practice: testing two theory-based models of organizational learning theory in Japan

The purpose of this study was to examine the interrelationships among top management leadership, organizational culture and human resource (HR) practices, and their associative effects on organizational performance. Based on the theory of organizational learning, we developed and tested two different causal models: (1) a feed-forward learning flow model in which supportive leadership by top management would create a community culture and HR practices within organizations; and (2) a feedback learning flow model in which a community culture would support the practice of supportive leadership by top management and HR practices within a firm. Our structural equation modelling (SEM) results for a sample of 225 Japanese small and medium-sized enterprises (SMEs) in Japan supported the second model, in which the dominance of a community culture within the firm is an antecedent of top management's supportive leadership, which in turn necessitates a performance-based appraisal practice and eventually leads to better organizational performance in terms of objective indicators of turnover and absenteeism rates and workforce productivity. The findings are used to discuss the role of top management leadership in a particular organizational culture from the organizational learning perspective. Limitations and directions for future research are also discussed.     

Comprehensiveness versus Pragmatism: Consensus at the Japanese–Dutch Interface

abstract    By comparing the views of managers working at the interface of two consensus-oriented societies, Japan and the Netherlands, we show important differences between the consensus decision-making processes as seen by Japanese and Dutch managers. These differences relate to how complete the agreement of opinion should be in order to speak of consensus, with the Japanese managers demanding a more complete consensus than the Dutch. The processes and conditions that Japanese and Dutch managers see as leading to consensus also differ. Japanese consensus is based on a more ordered, sequential process than Dutch consensus. Our respondents differed deeply regarding the role of the hierarchy in their own and the others' consensus processes, with both Japanese and Dutch managers seeing their own consensus process as less hierarchical. Our findings show that the concept of consensus is interpreted quite differently by Japanese and Dutch managers. This is an important warning for companies operating at the interface of these two societies. More in general our research illustrates the usefulness for international management research of detailed comparative studies focusing not on stark contrasts but on more subtle differences between management practices.     

Committed to the organization or the job? Effects of perceived HRM practices on employees' behavioral outcomes in the Japanese healthcare industry

This paper attempts to document how employees' perceptions of organizations' human resource management (HRM) practices influence their work behavior and outcomes, including the level of turnover intentions and job quality improvement, in a Japanese organizational and management context. In particular, an examination was made to clarify the mediating role of person–environment (P–E) fit and multiple aspects of work commitment to reach possible explanations of the relationships between perceived HRM practices and employees' behavioral outcomes, following recent work that studied the above linkages. The results of structural equation modeling using a sample of 1052 healthcare service employees in Japan provided basic support for the idea that the effects of HRM practices and employees' behavioral outcomes are neither direct nor unconditional. Moreover, employees' evaluations of their fit and commitment to their organizations were found to be the important mediators of the relationships between perceived HRM practices, while their evaluations of their fit to and involvement in their jobs were not. The findings are used to discuss why the specific forms of P–E fit and work commitment appear salient in Japanese organizations. The generalizability of the findings and the limitations of the study are discussed.     

How culture-sensitive is HRM? A comparative analysis of practice in Chinese and UK companies

There has been some concern about the extent to which models and practices of HRM are capable of being transferred from one country to another. This emerged in the late 1970s as concern that Japanese ideas might be adopted uncritically by US companies, and during the 1980s as concern that these ideas, after recycling within the US, might not be totally appropriate for consumption in other parts of the world. Further urgency is added to the question by the pressures on many organizations to develop their businesses internationally, or globally – since this increasingly means they have to consider and establish HRM policies which can span different national systems and cultures.

This paper considers the problem through a direct comparison of practices in matched Chinese and UK companies in order to establish where variations occur both within and between countries. It is evident that there are considerable variations in the form of HRM in different settings, but also some surprising similarities. Thus, for example, there are more similarities in manpower planning systems between Chinese companies and some of the UK companies than there are between all the UK companies. In this case it can be concluded that these elements are not greatly affected by national (and assumed cultural) differences. On the other hand, there is a sharp difference between the UK and Chinese companies with regard to pay and reward systems, but much consistency within each country. This suggests that there may be deep-seated differences between the two countries with regard to attitudes towards rewards which will limit the transfer-ability of HRM ideas in this area.     

Can export performance be explained by attitudinal differences?

There are striking differences in the performances of the UK and West German mechanical engineering industries. This paper suggests that attitudes of senior management of both countries can explain a large proportion of these differences. Focusing primarily on export performance, 81 variables collected from 210 companies are analysed. In seven major areas the attitudes of both groups of executives are significantly apart. Based on these results, it is possible to correctly classify 89 of the companies as belonging to the UK or West German mechanical engineering industries.     

Country‐of‐origin,localization, or dominance effect? An empirical investigation of HRM practices in foreign subsidiaries

This article contributes to two recurring and very central debates in the international management literature: the convergence vs. divergence debate and the standardization vs. localization debate. Using a large‐scale sample of multinationals headquartered in the United States, Japan, and Germany, as well as subsidiaries of multinationals from these three countries in the two other respective countries, we test the extent to which HRM practices in subsidiaries are characterized by country‐of‐origin, localization, and dominance effects. Our results show that overall the dominance effect is most important (i.e., subsidiary practices appear to converge to the dominant U.S. practices). Hence, our results lead to the rather surprising conclusion for what might be considered to be the most localized of functions—HRM—that convergence to a worldwide best practices model is clearly present. The lack of country‐of‐origin effects for Japanese and German multinationals leads us to a conclusion that is of significant theoretical as well as practical relevance. Multinationals might limit the export of country‐of‐origin practices to their core competences and converge to best practices in other areas. © 2007 Wiley Periodicals, Inc.     

Human resource management in developing economies: a comparison of India and Thailand

This paper reports the results of surveys of firms that were conducted both in India and Thailand. The surveys centred on a wide range of human resource management practices (staffing, training, compensation and evaluation). The sample consisted of both the subsidiaries of multinational corporations and locally owned companies. Statistical analysis suggests pronounced differences in employment practices between India and Thailand in some areas, while considerable similarities in other areas. The study controls for a variety of organizational factors (e.g., firm size, ownership (foreign versus domestic), union status).