Extending beyond borders: Multinational companies and the international management of labour

The paper investigates the potential consequences of MNCs' globalizing strategies for the management of labour, drawing on findings from a survey of employee management among MNCs operating in the UK. It finds clear evidence of transnational forms of management organization, including in the personnel sphere. But it also underlines that moves to globalism are uneven. Structures and policies to develop international management teams were found primarily among certain types of MNC. Most striking was the extent to which MNCs are actively engaged in the management of non-managerial employees at international level. Seven out of every ten companies monitored labour performance across sites in different countries. The broader significance of this finding lies in the business decisions which flow from the use of such information. As MNCs develop continental production strategies, pressures on local workforces, keen to attract future investment, for performance improvements are likely to intensify. These developments pose considerable challenges for labour which remains primarily local and national in its organizational focus.     

Examining the overseas staffing options utilized by Australian headquartered multinational corporations

MNCs need to use a range of options to manage their international operations. The aim of this study was to enhance understanding of how MNCs staff international management positions using a sample of top Australian MNCs across a range of industries. The rationales executives gave for their MNCs' staffing of international management supported selecting managers with higher competency levels for complex overseas assignments. Staffing options were chosen to reduce risks from cultural friction, divergent goals, and asymmetry in knowledge between the parent company and the host operation, chiefly through staffing by parent country nationals (i.e. long-term expatriates, Australians or Westerners already living in the host country or abroad, domestic international managers). Host country managers were used to reduce risks that arose from not being responsive to the host environment and to avoid costs, and when they were least risky to the firm. By contrast, the staffing options also served practical purposes, including deploying expatriate managers to provide skills (competencies) and, less frequently, to develop managers for future management positions in the organization.     

Hybridization: striking a balance between adoption and adaptation of human resource management practices in French multinational corporations and their Tunisian subsidiaries

International management research has tended to approach the transfer of human resource management (HRM) practices by examining the one-way transfer from parent companies to their subsidiaries, their adaptation to the subsidiaries’ local context and, more recently, the reverse transfer of HRM practices from subsidiaries to their headquarters. This article aims to analyse the transfer of HRM practices from headquarters to their foreign subsidiaries through the process of hybridization. Although numerous studies focus on the transfer of HRM practices between economically developed countries or from these countries to transitional economies, few have considered French multinational corporations (MNCs) operating in ex-colonized countries. This paper addresses the ways in which the HRM hybridization process is implemented in two French subsidiaries operating in Tunisia. It focuses on the dual perspectives of managerial staff at headquarters and subsidiaries as well as shop floor employees in the subsidiaries. A range of HRM practices (recruitment and selection, compensation, performance appraisal and career management) is analysed from their transfer to their reinterpretation. The results show the importance of the concept of hybridization on HRM practice transfer through a multi-level analysis of the strategies used by various stakeholders during the hybridization process. The paper also provides useful insights into the factors of hybridization that may foster or inhibit the transfer and adoption of HRM practices by foreign subsidiaries. These include the relational context, the type of practices transferred, the interests of different professional categories and their social interactions. Based on these factors, several hybridizations are identified. The study points out the specificity of the Tunisian context and shows that institutional factors have less influence on the transfer of HRM practices in ex-colonized countries than cultural factors that have a transversal influence on different HRM practices. Key cultural factors constraining the transfer include emotional relationships and interpersonal trust. Moreover, the international transfer of HRM practices from MNCs to ex-colonized transitional countries requires taking into account the post-colonialism and fascination effects.     

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 Bridging Role of Expatriates and Inpatriates in Knowledge Transfer in Multinational Corporations

Drawing on the knowledge‐based view of the firm, this article provides the first empirical study that explicitly investigates the relationship between different categories of international assignees and knowledge transfer in multinational corporations (MNCs). Specifically, we examine (1) the extent to which expatriate presence in different functional areas is related to knowledge transfer from and to headquarters in these functions and (2) the extent to which different categories of international assignees (expatriates vs. inpatriates) contribute to knowledge transfer from and to headquarters. We base our investigation on a large‐scale survey, encompassing data from more than 800 subsidiaries of MNCs in 13 countries. By disaggregating the role of knowledge transfer across management functions, directions of knowledge transfer, and type of international assignees, we find that (1) expatriate presence generally increases function‐specific knowledge transfer from and, to a lesser extent, to headquarters; and that (2) the relevance of expatriates and former inpatriates varies for knowledge flows between headquarters and subsidiaries. Additionally, we discuss implications for research and practice, in particular regarding different management functions and different forms of international assignments, and provide suggestions for future research. © 2015 Wiley Periodicals, Inc.     

HRD in multinationals: the global/local mix

This article is concerned with how MNCs (multinational corporations) differ from indigenous organisations in relation to their human resource development (HRD) practices, and whether this relationship changes across countries. We question whether local isomorphism is apparent in the HRD practices of MNCs, or whether MNCs share more in common with their counterparts in other countries. A series of hypotheses are put forward and tested, using survey data from 424 multinational and 259 indigenous organisations based in the UK and Ireland. The results suggest a hybrid form of localisation, where MNCs adapt their practices to accommodate national differences, but that these adaptations do not reflect convergence to domestic practice. The results also indicate that MNCs are selective in the HRD practices that are adapted. Evidence from this study indicates that country differences in career traditions and labour market skill needs are key drivers in the localisation of associated HRD practice. In contrast, MNCs, irrespective of national context, adopt comparable systematic training frameworks, ie training‐need identification, evaluation and delivery.     

Workplace Practices of Japanese and Australian Multinational Corporations Operating in Singapore,Malaysia and Indonesia

This article addresses occupational health and safety and equal employment opportunity in Australian and Japanese multinational corporations (MNCs) in Singapore, Malaysia and Indonesia. the author is concerned with how practices in these MNCs are affected by local conditions in the countries and examines the practices which occur, why different practices occur between countries and how practices interact with local political, cultural and social constraints. the article examines how MNCs adjust to prevailing workplace practices in Southeast Asia. It concludes that MNCs use some workplace practices employed in Australia as well as adapting their workplace practices to those which they either perceive to exist on a cultural and social level or are regulated by legislation in the host country.     

狙击跨国巨头的“本土杀手”

波士顿对全球范围的本土杀手进行了一个研究和解析,他们制作了BCG本土50强巨擎企业榜单,杀手们大多来自于中国、印度、巴西等,杀手们是由新一代雄心勃勃的管理层领导的富有活力的私营企业。最关键的是,这些本土巨擘更擅长赢得复杂市场,从劣势中创造机遇     

British Factory, Japanese Factory and Mexican Factory: An International Comparison of Front-Line Management and Supervision

This paper presents a case study of a Japanese-owned electronics firm, presenting a comparative analysis of the company's supervisory systems in three of its plants located in different countries – Japan, Mexico and Britain. Comparative analysis is enabled through use of the concept of a supervisory system of control, which allows us to match the relative positions of managers, supervisors and workers across the three sites. The case study data enables us systematically to examine questions of the transferability of a Japanese supervisory system – a central component of Japanese manufacturing – outside of Japan. The results suggest that 'Japanese' supervisory systems have been established with more success in Mexico than in Britain, and the main factors that explain this are varying local labour market conditions, limits to managerial control on the shopfloor, the relationship between the product market and the organization of production, and local and expatriate management commitment to a Japanese system.     

French multinational companies’ strategies and co-ordination mechanisms: the role of human resource management in Europe and Nigeria

The everchanging European context may well lead to the evolution of MNCs’ strategies in Europe and to the evolution of the control mechanisms within their subsidiaries. The author analyses the issue from the angle of human resources management, considered as an informal control tool that is widely recognized by both scholars and managers. This research therefore aims at analysing whether or not and how HRM systems embody a possible integration process in the European economic space. The methodology is based on a case study from a French multinational company belonging to the automobile industry while the investigation, a comparative analysis of the headquarters-subsidiaries relationships in England, Spain and Nigeria, points out the specificity of the European context regarding corporate strategy orientations, subsidiary roles and personnel transfer policies. The major conclusions from such an analysis suggest a framework that gives prominence to the differentiation of the management process between Europe and Nigeria.

These results confirm previous literature on co-ordination mechanisms in complex business organizations.     

International human resource policies and practices in japanese,european, and united states multinationals

This article presents the results of a survey comparing international human resource policies and practices in Japanese, European, and United States multinational companies. The survey focused on the use of expatriates over local nationals in overseas management positions, adoption of nonethnocentric policies, and incidence of international human resource management problems. Regression analysis using the entire sample indicated that ethnocentric staffing and policies are associated with higher incidence of international human resource management problems. Also, Japanese companies as a group are shown to have more ethnocentric staffing practices and policies, and they experience more international human resource management problems than do American and European firms.     

战略性国际人力资源管理初论——以A公司为例分析

全球化的趋势促使跨国企业内部的人力资源跨国移转，为能有快速有效的当地反应以达成企业跨国经营的目标，国际人力资源管理必须提升到战略的层次来探讨，并将它与环境因素、国际经营战略结合，才能赢得持久性的胜利。国际人力资源管理是跨国企业海外经营成功的重要保证，它是跨国企业非常值得研究的议题。本文以宝钢为例进行分析，抛砖引玉，以求有所裨益。     

The effect of corporate-level organizational factors on the transfer of human resource management practices: European and US MNCs and their Greek subsidiaries

One of the central questions in the literature on MNCs is the extent to which their subsidiaries act and behave as local firms (local isomorphism) versus the extent to which their practices resemble those of the parent company or some other global standard (internal consistency). Drawing on the resource-based view and resource-dependency theory, this paper aims to provide an insight into the interplay of several corporate-level organizational factors that affect the transfer of HRM practices across borders. Data collected from 80 European and US multinationals with subsidiaries in Greece are used to test specific hypotheses. Our results indicate that the level of importance attached to HRM by the MNC's top management and international experience have the highest explanatory power for the transfer of HRM practices, while international competitive strategy, informal control and the presence of expatriates also have a marginally significant influence.     

Context‐bound configurations of corporate HR functions in multinational corporations

Considerable attention has focused on how multinational corporations (MNCs) deal with the simultaneous pressures of globalization and localization when it comes to human resource management (HRM). HR function activities in this process, however, have received less focus. The study presented here identifies configurations of the corporate HR function based on international HRM (IHRM) structures, exploring how issues of interdependency shape corporate HR roles. The study is based on 248 interviews in 16 MNCs based in 19 countries. The findings are applied to develop a contextually based framework outlining the main corporate HR function configurations in MNCs, including new insights into methods of IHRM practice design. © 2010 Wiley Periodicals, Inc.     

Worlds colliding: the translation of modern management practices within a UK based subsidiary of a Korean-owned MNC

This paper explores the factors that served to dislodge an espoused strategy of quality management with ‘soft’ HRM within a British subsidiary of a Korean owned multinational company. Accounts from British and Korean managers revealed competing sets of tensions at three levels: external organizational, intra-organizational, and internal workplace. The case is important for a number of reasons. First, research on UK based subsidiaries tends to have focused upon American and Japanese owned companies, with less evidence from MNCs from later industrialized economies. Second, evidence suggests that MNCs from Korea, Taiwan, and Singapore have been experimenting with Western influenced high-performance work systems – but there is less evidence about how these are actually translated into the workplace. Third, there is a growing literature that suggests that the transfer of management practices in MNCs can be partly understood as a ‘negotiated process’, and disagreements may emerge between organisational actors in respect of the meaning and function of such practices. This article offers further support for this contention and offers insights into how these processes affected day-to-day management of the workplace and undermined the espoused strategy.     

Expatriates in their own home: A new twist in the human resource management strategies of japanese mncs

Liaison positions in an overseas subsidiary represent a vital link to the parent company. Staffing this position constitutes a critical HRM decision. Based on exploratory interviews conducted with personnel managers and foreign employees, we examine an emerging approach to meeting this staffing need which entails hiring non-Japanese as employees of the parent company, retaining them at headquarters in Japan for three to four years, then assigning them back to their own countries as expatriates. We discuss this approach's underlying rationale, its advantages and disadvantages, and its potential implications for future IHRM developments within Japanese MNCs.     

Expatriates of host-country origin: ‘coming home to test the waters’

Expatriates are an integral part of any multinational company's (MNC) staffing strategy. However, the high failure rate of expatriates has forced these firms to look at alternate or complementary staffing strategies. This paper focuses on one such strategy, i.e., transferring people of host-country ethnic origin from parent-country to manage host-country operations. The purpose of this exploratory study is to ascertain whether and how MNCs have used expatriates of host-country origin (EHCO) as a global staffing strategy, in the context of India, and the extent of its success both for the individuals and the organizations concerned.

Based on a survey and in-depth interviews of human resource managers of 15 MNCs with operations in India, the study concludes that EHCOs are more willing to accept expatriate assignments than parent-country nationals (PCNs); however, their success on the assignment depends on the breadth and depth of their experience both in the parent and host country. With regard to their work effectiveness vis-à-vis PCNs, no significant difference was found. Managerial implications of this staffing strategy are explored and future research directions identified.     

Dual organizational identification among Japanese expatriates: the role of communication in cultivating subsidiary identification and outcomes

Dual organizational identification is significant for the success of multinational corporation (MNC) employees. This study has extended this research area by examining expatriates of Japan-based MNCs. In addition, this study has extended the existing identity-matching principle by incorporating a communication perspective. It investigated the antecedents and outcomes of subsidiary identification. Self-report survey data from 159 Japanese expatriates in the USA were analyzed. The results indicated the significance of local language proficiency in the development of identification with the subsidiary. In addition, local identification was the predictor of expatriates' adaptation to the subsidiary. Furthermore, the results showed that local organizational identification is related to their stress level in international assignments. These results also supported the growing view of situation-oriented identification. The follow-up interviews reinforced these results.     

Managing risk in the formative years: Evidence from young enterprises in Europe

This paper empirically investigates aspects of risk management in young small enterprises? effort to survive and grow. We use a new dataset on several thousands small businesses in their “formative age” (2–8 years old) in 10 European countries and 18 sectors. Firms across all types of sectors use internal risk mitigation strategies to manage technology risk and operational risk. Financial risk is managed by tapping formal and informal networks. Market risk appears less amenable to internal management action. Formal network participation (strategic alliances) is a strategy cutting across all kinds of risk with the exception of operational risk. Firms in knowledge-intensive sectors (high-tech manufacturing and KIBS) engage in risk management activities more extensively. Firms led by more educated entrepreneurs and/or operating in demanding volatile markets tend to network more and to use internal risk mitigation strategies more extensively.     

A strategic contingency approach to expatriate assignment management

This exploratory study examines how expatriate management practices differ with respect to three international management strategies (local, centralised or global) in 27 mature multinational corporations. In particular, this study examines the categories of expatriate assignments, the strategic integration of expatriate assignments into leadership development and the types of human resource practices that firms utilise to manage expatriates. Results indicate that organisations differentially assign expatriates based on the firm's respective international management strategy. Firms with a global management strategy made greater use of developmental expatriates, had a greater number of senior managers with expatriate experience and had a stronger focus on leadership development through expatriation. Firms did not differ with respect to their use of expatriate management practices based on their international management strategy.