The emergence of the pluralism construct and the inpatriation process

The concept of centric (i.e. ethnocentric, polycentric, regiocentric and geocentric) orientations, applied to strategic international human resource management (SIHRM), has been argued to reflect the corporate top management dominant logic of managing and staffing multinational subsidiaries in hierarchical multinational corporations (MNCs). In this paper, we introduce a new, complementary concept of pluralistic strategic global human resource management (SGHRM) orientation for network-oriented global organizations. Moreover, we develop an integrative framework for SIHRM/SGHRM orientations, which accommodates both centric and pluralistic perspectives. The dimensions used in the framework development include: 1) nature of the headquarters-subsidiary exchange (transactional/relational); and 2) the differentiation of dominant relational norms governing co-operation in the multinational network (obligatory/consensual). By focusing on the interaction between formal and informal contractual and normative dimensions, we derive four distinct SIHRM/SGHRM orientations (exportive, adaptive, integrative and pluralistic). This conceptual framework offers insights into how the innovative global staffing practice of inpatriation may foster the emergence of the unique outcomes of social capital, trust, commitment and legitimacy in global networks.     

Auditing Human Resource Management in the Global Environment

The globalization of business is making it increasingly important to understand how multinational enterprises (MNEs) can operate more effectively. Human resource management can be a critical determinant of corporate effectiveness, particularly as it plays out in the global arena. This article discusses how MNEs enhance their ability to utilize human resources and internal labour markets for competitive advantage through audits of the international human resource management (IHRM) function. A multidimensional auditing framework is developed and applied to the strategic aspects of IHRM in MNEs and international joint ventures.     

MNC practice transfer: institutional theory,strategic opportunities and subsidiary HR configuration

Human resource (HR) practice transfer is an important topic in the domain of strategic international human resource management (SIHRM). Previous research in practice transfer has emphasized the challenges arising from the institutional distance between the home and host countries. However, potential opportunities due to this distance have been largely overlooked. Shifting the focus away from looking at institutional distance as a constraint, we examine the possibilities of strategic opportunities that exist because of institutional distance. We argue multinational corporation (MNC) subsidiaries can exploit these opportunities to gain competitive advantage. Building upon SIHRM literature, institutional theory and the resource-based views, we propose a conceptual framework explaining how institutional environments present strategic opportunities. We argue that these strategic opportunities are most abundant in the case of moderate institutional distance between the two countries. Building upon the conceptualization of strategic opportunities, we propose a model of subsidiary HR configuration, and then we explain how an HR configuration could be a source of competitive advantage. Further, we examine the role of MNCs' overall SIHRM orientation in relation to the identification and exploitation of strategic opportunities.     

Strategic human resource management and supply chain orientation

Most SHRM research has concentrated on single, focal organizations and on activities taking place within the firm. The purpose of this article is to lay a foundation for studying SHRM in the supply chain. We present a framework which identifies factors that influence whether adopting a supply chain orientation (SCO) is effective, and articulates the contingencies that shape SHRM practices needed to achieve and capitalize on SCO. We make several contributions to the strategic human resource management and supply chain literatures. First, we highlight this neglected area of research. Second, we expand the boundary conditions of strategic human resource management and HR systems from a primarily single firm, intra-organizational focus to one which includes both intra- and inter-organizational relationships. Third, we provide a framework for understanding the links between HR systems, SCO, and strategic outcomes. Fourth, we build upon previous theorizing in strategic human resource management and provide a framework for research in the supply chain context. And finally, we offer propositions for future research, along with a decision making model which has implications for both research and management practice.     

How strategic considerations influence decision making on e-HRM applications

Although numerous studies indicate that the added value of human resource management is strongest when HRM decisions are linked to the organizational strategy, practical knowledge about how strategic considerations influence decision-making processes relating to e-HRM is limited. Therefore, the purpose of this study is (1) to examine in three case studies how strategic considerations influence the decision-making process around the introduction of e-HRM applications, (2) to present propositions for further research, and (3) to offer recommendations on how to better include strategic considerations in the decision-making process. Three in-depth case studies of companies' e-HRM implementation were performed using a model on e-HRM strategy formulation (Marler, 2009). The case studies reveal that when specific business drivers are absent from the decision-making process, the main role of e-HRM becomes to provide an infrastructure with a focus on preventing dissatisfaction. In order for e-HRM to be used in a more strategic way, business and HRM should be aligned.Based on the findings, we offer research propositions for academics studying this emerging field of the interconnections between strategy, human resource management and IT systems. In addition, we offer recommendations for HR practitioners on how to optimize the match between business and HRM.     

A model of multinational enterprise subsidiary staffing composition

A large proportion of the multinational enterprise (MNE) literature focuses on parent country national (PCN) expatriates. The high costs of managing and supporting PCNs on foreign assignments, however, have made these assignments less attractive for MNEs and, as a result, MNEs are more actively exploring ways to effectively utilize third country nationals (TCNs) and host country nationals (HCNs), as well as PCNs to satisfy international subsidiary staffing needs. Grounded in the person–environment (P–E) fit theory, we delineate three environmental dimensions (strategic, national and organizational) to offer some propositions that may serve to guide this exploration. These propositions are based on an integrative model that examines the MNE subsidiary staffing composition under different combinations of strategic, national and organizational dimensions. We conclude with suggestions for future research.     

Managerial mindset as the mechanism of the country-of-origin effect: evidence from Chinese multinational enterprises’ approach to employer associations

The country-of-origin effect (COE) on employment practices in multinational enterprises (MNEs) has become an important area of international human resource management research. However, research on the mechanisms of the COE, a fundamental and critical aspect of the country-of-origin phenomenon, is scant. This study seeks to empirically explore the mechanisms through which country-of-origin influences Chinese MNEs’ approach to host-country employer associations. Analysis of qualitative data from 13 Chinese MNEs revealed that country of origin affected the approach of Chinese MNEs to host-country employer associations in the form of transfer of managerial norms. It also revealed that it was the mindset of those home-country nationals who were key decision-makers at subsidiaries that enabled the COE in Chinese MNEs. This paper highlights the importance for future studies of international strategic human resources management to pay attention to micro-foundations of cross-border practice transfer and to incorporate analyses of managerial cognition in the investigation of MNEs’ management practices.     

Strategic international human resource management approaches in the maquiladora industry: a comparison of Japanese,Korean and US firms

The maquiladora option has made Mexico an increasingly attractive off-shore manufacturing site for multinational enterprises (MNEs) seeking global competitiveness. However, MNEs often encounter human resource management (HRM) challenges as they attempt to leverage these maquiladora benefits. MNEs use three approaches to international human resource management (IHRM) design in addressing these challenges – a mechanistic, ‘control’ approach; a paternalistic, ‘human relations’ approach; and a developmental, ‘human resource’ approach. This paper compares and contrasts these IHRM design approaches in Japanese, Korean and US maquiladora manufacturing operations in Mexico, identifies implications for the management of diversity based on these findings, and discusses the related competitiveness implications.     

Aligning strategic human resource management and person–environment fit

Strategic human resource management addresses the need to create vertical linkages of human resource management (HRM) attributes with corporate strategy as well as horizontal linkages that integrate practices among HRM functions. Most models commonly focus on either vertical or horizontal linkages. This paper utilizes three categories of person–environment fit to create both vertical and horizontal linkages. Based on a strategic contingency framework, it demonstrates how person–environment fit relates to organizational competencies that supports corporate strategy. Furthermore, it demonstrates how person–environment fit can be used to promote internal alignment of HRM practices. Implications of this approach to strategic human resource management are then discussed.     

Flexible global working arrangements: An integrative review and future research agenda

The topography of global mobility within multinational enterprises (MNEs) is evolving where we now have a portfolio of flexible global working arrangements (FGWAs) including: international business travellers, flexpatriates, short-term international assignees, international commuters, and rotational assignees. The need for more agile structures and more efficient mechanisms to transfer globally dispersed knowledge are two key enablers in this evolution. With increased interest, this paper offers the first systematic, integrative review of 100 articles on FGWAs. The review indicates that these forms of global work appear to be a somewhat overlooked double-edged sword in that they may confer significant but unrealised value for MNEs alongside hidden, adverse consequences for individuals. Notable was the lack of insight into the HR function's input or oversight at either a strategic or operational level. We find that there is a distinct lack of strategic linkages to global mobility and/or HR functions. We propose a research agenda that centres on better understanding the international HR function's role and responsibility in providing a more strategic and sustainable perspective of these increasingly common FGWAs alongside virtual work. The COVID-19 pandemic may offer a critical juncture point in which there is greater strategic consideration on the utilisation and support of such arrangements.     

Out of India: Towards a conceptual framework on internationalization motives,parenting styles and human resource management practices among Indian MNE subsidiaries in Ireland

The significant growth of Asian multinational enterprises (MNEs) in western economies in recent years, in particular in smaller advanced economies such as Ireland, has led to calls for a deeper understanding of the drivers of location choice among these MNEs and for more compelling accounts of the parenting and management of the subsidiaries being established. In this conceptual contribution, we focus on the specific case of Indian MNEs with subsidiaries in Ireland. Assembling theoretical insights from the literature on parenting styles and headquarter-subsidiary interactions, coupled with practice-led observations garnered from Indian MNEs, we develop a conceptual framework elucidating key variations in headquarter-subsidiary relationships and the HR policy and practice mix. We reason that the preferred approach to corporate parenting, vested in adding value to the subsidiary, extracting value from it, or seeking a balance in the overall exchange, results in a range of interactions between headquarters and subsidiaries, encompassing integration, collaboration or local responsiveness. Furthermore, we postulate that the preferred headquarter-subsidiary interactions influence the subsequent HR recipes adopted in the subsidiary setting as it seeks to build its strategic position within the broader MNE network. In order to deepen lines of inquiry around these different interactions, we advance a series of propositions for testing.     

Is there a bigger and better future for employer branding? Facing up to innovation,corporate reputations and wicked problems in SHRM

Employer branding is becoming an increasingly important topic for research and practice in multinational enterprises (MNEs) because it plays directly into their corporate reputation, talent management and employee engagement agendas. In this paper, we argue that the potential effects of employer branding have yet to be fully understood because current theory and practice have failed to connect this internal application of marketing and branding to the key reputational and innovation agendas of MNEs, both of which are at the heart of another strategic agenda – effective corporate governance. However, these agendas are characterised by ‘wicked problems’ in MNEs, which have their origins in competing logics in strategic human resource management (SHRM). These problems need to be articulated and understood before they can be addressed. This paper proceeds by (1) setting out a definition and model of employer branding and how it potentially articulates with corporate governance, innovation and organisational reputations, (2) discussing and analysing the ‘wicked problems’ resulting from the sometimes contradictory logics underpinning innovation and corporate reputations and SHRM in MNEs and (3) evaluating the potential of employer branding as a contribution to the third SHRM approach – HR strategy-in-action – as a way of resolving three particularly wicked problems in MNEs. We conclude with some ideas for research and practice on the future for employer branding.     

The effects of labour costs and workplace constraints on foreign direct investment among highly industrialized countries

Drawing on economic propositions underlying theories of foreign direct investment and organizational propositions underlying international human resource management strategic decision making, the theoretical model developed herein integrates two distinct but interrelated strategic HRM assessments. In deciding where to invest, multinational companies (MNCs) assess both (1) the net comparative labour cost advantages associated with alternative host-country IR systems and (2) the comparative flexibility afforded them by alternative IR systems to either transfer or create preferred HRM strategies abroad. The results of the present study indicate that, on average, MNCs from the major investor countries of the world give substantial weight to differences in national IR systems in deciding how much to invest across alternative high-skill, highwage countries. In particular, the evidence indicates that MNCs have invested more in countries with higher skills, lower compensation costs and lesser government and collective bargaining constraints on MNCs' flexibility to set the terms and conditions of employment or otherwise deploy preferred HRM practices abroad.     

The coalescence between synergies and conflicts of interest in a top consultancy firm: an analysis of the implications for consultants' attitudes and behaviours

The management of human resources represents a critical strategic function for consultancies. For such organisations, the HRM literature aligned to the resource‐based view prescribes practices that centre on strengthening the relationship between a consultancy firm and its staff. However, this insular framework fails to take adequate account of consultants' engagement with external actors, particularly clients. This article explores the interplay between the synergies and conflicts of interest generated by the relational environment in which consultants operate and the implications of these tensions for consultants' attitudes and behaviours in a leading international consultancy firm. The findings from this study advance our understanding of the factors that affect the management of these key human resources and contribute to growing critiques calling for the refinement of the resource‐based view.     

Strategic human resource management and MNEs' performance in China

This study tested a perspective of strategic human resource management (SHRM) and compared human resource practices among multinational enterprises (MNEs) in two industries in China. Specifically, empirical data from firms in China's soft-drinks and electronics industries were analysed. The results supported a number of basic assumptions of the SHRM model, such as those regarding the relationship among firm environments, firm strategy, firm human resource practices and firm performance.     

Dynamizing human resources: An integrative review of SHRM and dynamic capabilities research

Human resource management (HRM) systems have been extensively analyzed in academic research yet limited attention has been paid to the role of HRM dynamic capabilities (DC) and their impact on resources and practices, employee well-being and firm performance. Our study bridges this gap by defining a new categorization of HRM DC based on their ultimate aims: building knowledge, advancing social integration and developing reconfiguration-enhancing mechanisms. In parallel, we offer an integrative framework to shed light on how strategic human resource management (SHRM) can accelerate HRM DC development. Through this conceptual process model and typology of capabilities, we deepen the discussion around the core components of HRM systems, HRM DC, and their effects on resources and practices, employee well-being and performance. In practical terms, HRM DC represent a promising driver of sustainable long-term organizational growth by enabling firms to boost their strategic agility and capacity to navigate in the presence of environmental dynamism.     

Strategic human resource management: a conceptual approach

In this paper conceptual issues associated with strategic human resource management are addressed. The rapidly expanding international interest in strategic human resource management is first highlighted. The article then explores some of the broader issues around the debate on SHRM that can inform thinking at a macro level. Firstly, the progress made towards understanding the meaning of SHRM is analysed, then a brief overview of the major models of SHRM to date is presented. This overview is used to highlight the key variables and interrelationships that need to be included in a model of SHRM, and a more detailed critical analysis of the contribution of the literature in each of these areas follows. A summary of the most important research questions arising out of the literature is followed by a model of the SHRM process, which attempts to remedy the major weaknesses in existing models of SHRM. The ways in which this model may be used as a basis for empirical research are then noted.

Strategic human resource management     

The changing role of the corporate HR function in global organizations of the twenty-first century

The primary focus of this paper is to examine how the increased demand for global corporate strategic consistency and flexibility redefines the roles of the corporate human resource function and its venues of influence. In particular, we analyse possible causal linkages among strategic international HR management, strategic leadership of corporate top management team (i.e. TMT), and alternative global assignment options. As globalization significantly changes not only the operating boundaries but also the symbolic context of the global organization, we argue that corporate HR function can play more influential roles in global organizations than it has in the past.     

The effect of international firm mobility on wages and unemployment

Although the increase in international firm mobility is well documented, its effects on macroeconomic aggregates and the labour market remain controversial. Multinational enterprises (MNEs) benefit from an international outside option during wage bargaining, leading to a decrease in average wages. However, a strategic incentive to hire extra workers in a foreign (home) plant in order to reduce wages in the home (foreign) plant has an indirect positive effect on wages due to spillovers resulting from an increased demand for labour. In a framework of frictional unemployment, permitting MNEs leads to a decrease in unemployment. Abstracting from transport and plant fixed costs, MNEs lead to higher wages. Including transport and plant costs generally leads to lower wages, though the effects are small. The strategic hiring effect is important in mitigating the fall in wages.