Standardize or Customize: The Interactive Effects of HRM and Environment Uncertainty on MNC Subsidiary Performance |
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Authors: | Julie A Cogin Ian O Williamson |
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Institution: | 1. Australian School of Business at the University of New South Wales;2. Melbourne Business School, Australia |
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Abstract: | This study examines the impact of customizing (as opposed to standardizing) human resource management (HRM) practices on subsidiary performance in multinational corporations (MNCs). We examine how this relationship is influenced by environmental uncertainty. Hypotheses were tested using data from 92 subsidiaries of a large MNC operating in 27 countries. The results showed an interactive relationship between the customization of HRM practices and subsidiary environmental uncertainty on both financial (net profit) and nonfinancial (customer satisfaction) objective measures of subsidiary performance. The results of this study provide important empirical insights for researchers and practitioners into how HRM can be best configured to drive multiple performance outcomes for MNC subsidiaries. © 2014 Wiley Periodicals, Inc. |
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Keywords: | international HRM business‐level strategies environmental uncertainty strategic HR |
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