Adoption of High‐Performance Work Systems by Local Subsidiaries of Developed Country and Turkish MNEs and Indigenous Firms in Turkey

High‐performance work systems (HPWSs) are seen as important in helping strengthen competitive strategies of developed‐country multinational enterprises (DC MNEs). Commensurate with global competitive pressures and internationalization strategies, emerging‐country MNEs (EC MNEs) and indigenous firms are also increasingly adopting HPWSs. HPWSs are not only seen as simply performance enhancing systems, but also as facilitators of internationalization. MNEs represent an important test bed for the HPWSs and their applicability in different national contexts. In this article, we contribute to the extant literature by focusing on HPWS adoption level within domestic subsidiaries of DC MNEs and EC MNEs along with stand‐alone indigenous firms in a single‐country setting by keeping the host‐country environment as constant. © 2015 Wiley Periodicals, Inc.     

Internationalization strategies of frontier Lusophone-African multinational enterprises: Comparative case studies of Angola and Mozambique

Internationalization theories suggest that enterprises from emerging and frontier markets will adopt different entry modes than those in advanced economies. Very few studies to date, however, examine the process of how multinational enterprises (MNEs) from frontier markets internationalize or evaluate which factors influence their mode of entry into global markets. This research investigates the internationalization strategies of Lusophone Africa MNEs from Angola and Mozambique, more specifically their entry mode, to expand the framework for entry mode strategies to include the motivations and issues of MNEs from emerging and frontier economies. Surveys, as well as in-depth, in-country, qualitative interviews reveal that these frontier and emerging market MNEs opted for equity-based investment strategies as their preferred mode of entry. A significant second group opted for e-commerce/e-business strategies, and direct and indirect exports. Finally, a smaller portion of the interviewees chose Greenfield investment as a mode of entry. Many of these MNEs could be classified as born global/INV.     

Performance management practices within emerging market multinational enterprises: the case of Brazilian multinationals

This study advances our understanding of HRM within emerging market multinational enterprises (EM-MNEs) by examining the extent to, and mechanisms by, which Brazilian MNEs standardise or localise their performance management (PM) policies and practices, and the factors that influence their design and implementation. We explored these issues through qualitative case studies of three Brazilian MNEs. The analysis of interview data reveals a strong tendency for Brazilian MNEs to centralise and standardise their PM policies and practices. The key finding of this paper is that PM practices within Brazilian MNEs are not based on indigenous Brazilian practices, but, rather, are heavily influenced by global best practices. The findings are at odds with previous research, which suggests that EM-MNEs apply different HR practices in developed country subsidiaries and developing country subsidiaries. Also, contrary to expectations, our results indicate that institutional distance does not have a significant influence on the adaptation of PM practices at subsidiary level.     

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.     

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.     

National versus supranational bank regulation: Gains and losses of joining a banking union

We ask how the structure of international banking affects the decision of a national regulator to join a banking union and to transfer regulatory powers to the supranational level. The focus is on bank supervision and bank resolution. A national regulator ignores possible gains or losses, which accrue to other jurisdictions if banks are internationally active. A supranational regulator takes these regulatory external effects into account. While supranational regulation improves total welfare, this is not necessarily the case for welfare in single countries. By analyzing the size and determinants of spillover effects we show how they constrain a country’s willingness to participate in a banking union. Our results may explain why some member states of the European Union currently hesitate to join the European Banking Union.     

A comparative study of performance appraisals,incentives and rewards practices in domestic and multinational enterprises in the country of Brunei Darussalam

Very little work in the past has focused on the comparative analysis of human resource management (HRM) practices between domestic and multinational enterprises (MNEs). The majority of the work in this area has instead concentrated on comparing the HRM practices utilised by the subsidiaries of MNEs, and has mostly been conducted in the context of developed countries. In this paper, we examine how the HR practices of appraisals, rewards and incentives are offered, explained and monitored in domestic enterprises (DEs) versus MNEs, and how they are similar or different in nature. This paper is based on primary data collected from a cross-section of firms operating in the country of Brunei Darussalam – a context within which no previous work of this nature has been undertaken. An analysis reveals several interesting results: HR practices are more advanced and better structured in MNEs that conduct performance appraisals (PA) more frequently than DEs, and their feedback system is also rapid; incentives and rewards systems in MNEs follow market ethos and principles; the HR directors and employees of MNEs are more receptive to PA than those in DEs whilst, in contrast to DEs, incentives and rewards systems in MNEs follow market ethos and principles. Furthermore, with regard to size, younger firms are more likely to be following market principles in terms of explaining incentives and rewards systems to their employees, whilst older firms claim that working for them carries social and psychological benefits for employees.     

Corporate sustainable actions through United Nations sustainable development goals: The internal customer's response

Designing sustainable corporate social responsibility (CSR) strategy utilizing the United Nations sustainable development goals (SDGs) framework to deal with consumption in a sustainable and responsible fashion is increasingly a requirement in emerging economies. This paper examines sustainable social initiatives (SIs) via a CSR model and social lens as part of the SDG framework for multinational enterprises (MNEs), to determine the perception of the internal customer and stakeholder (i.e., the employee) alongside their identification and voluntary engagement in their organization's SIs. The study examines internal customers (as the employee) of two MNEs who reside in a developed country and two developing countries from emerging economies. The findings indicate that identification with the SDG‐based SIs selected by MNEs for this study mediates the relationship between perception of their organization's perceived CSR and engagement in these initiatives, for employees in developing countries (and emerging markets) but not the developed country. This suggests the importance that internal employees “identify” with SDG‐based SIs in emerging markets in particular and builds on significant managerial implications for MNEs in these markets alongside their voluntary work with nonprofits as part of their SIs and CSR strategy. The findings also confirm the importance of MNEs adopting SIs that are not only relevant to the global United Nations SDG framework but also relevant to the actors, collaborators, and nonprofit organizations involved in these SIs, including stakeholders and in particular the internal customer (i.e., employee) who volunteer their time to implement these SIs in the communities where MNEs reside.     

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.     

Emerging issues and challenges in global staffing: a North American perspective

Multinational enterprises (MNEs) recognize that human resources play an important role in gaining a competitive advantage in today's highly competitive global business environment. While all aspects of managing human resources are important, staffing, continues to be an essential IHRM activity that helps MNEs in their need for coordination and control across widely dispersed units. As such, researchers and practitioners alike are interested in addressing the key issues and challenges in staffing the several types of employees that comprise the global or multinational workforce. We focus on three issues that have emerged in recent years regarding how MNEs staff their multinational workforce including: 1) managing different types of employee groups; 2) selection and management of employees posted to international assignments; and, 3) receptivity to international careers among early career individuals. We review these and then describe an empirical study conducted on the third issue.     

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.     

The Europeanisation—or the Erosion—of Industrial Relations?

This article considers the impact of European integration on industrial relations. An industrial relations regime can be understood as a tension between employment structured by market dynamics and broader social regulation, between the principles of contract and status. Economic Europeanisation threatens this relationship. Its survival may depend on new forms of supranational regulation, but not necessarily as the ‘social dimension’ of Europeanisation is customarily conceived.     

Work–life management tensions in multinational enterprises (MNEs)

Global work–life initiatives present unique challenges for HR departments in multinational enterprises (MNEs) because of the complexity of implementing policies that require sensitivity to local issues such as cultural traditions and legislation. A tension-centered approach to analyzing these complexities, not utilized in previous research on the topic, is applied here. Three generic sources of tensions are developed: strategic/policy versus operational considerations, centralization versus decentralization and contextual/institutional versus organizational demands. Earlier research yields four potential responses to tensions: opposition, spatial separation, temporal separation and synthesis, with a fifth option added for no recognition of tension. The framework is applied to global work–life initiatives using data from 27 qualitative interviews with regional and global HR managers employed by 13 MNEs. There is evidence supporting the prevalence of each of the three generic sources of and five responses to tension, and of overlap across categories and responses. For managers, the analysis provides useful insights for constructing global work–life initiatives that are effective and responsive to local conditions. For researchers, the tensions approach yields a relevant tool for analyzing global work–life initiatives. For both, the findings suggest it is important to guard against biases related to Western notions of progress.     

An analysis of recruitment,training and retention practices in domestic and multinational enterprises in the country of Brunei Darussalam

This paper studies the behavioural differences in the recruitment, training and retention practices of domestic enterprises (DEs) versus multinational enterprises (MNEs) in the country of Brunei Darussalam. Hypotheses from literature survey predict MNEs to be more stringent in their recruitment and training and rigourous with promotion practices. Results show this is to be largely true. MNEs are found to be more rigourous in recruitment and place more emphasis on such traits as candidates' ‘devotion to task’, ‘self-motivation’ and ‘independent judgement’. MNEs were found to rely more on internal appointments. MNEs place more emphasis on training; they also emphasise a stronger work culture by relying on ‘induction by socialisation’ and ‘buddy system for mentoring’. When analysed by age, older firms were found to place more importance on language and commitment. They also rely on training via the buddy system and on external appointments for senior posts. Large firms place emphasis on employees' willingness to travel and on work experience in other countries as the main recruitment criteria. Large firms also believe in external appointments for senior positions. The study, which is one of few of its kind conducted in non-Western environment, and the only one in the context of Brunei, adds to our understanding of human resource practices in the context of two different genres of enterprises and has implications for future research.     

International performance appraisal practices and approaches of South Korean MNEs in China

International performance appraisal of multinational enterprises (MNEs) in foreign subsidiaries has received inadequate research attention. The current study investigates the international performance appraisal practices, including procedures and methods, criteria and feedback, of South Korean MNEs in China and the extent to which these practices are localized or/and ethnocentric. Results of analyzing the in-depth interviews with local and expatriate managers show South Korean MNEs tend to adopt an ethnocentric approach to managing performance appraisals for expatriates and an integrative approach for host country-nationals by transferring their home appraisal practices to their Chinese subsidiaries. These approaches can be attributed to relative strength effects, i.e. the relative economic strengths and contextual differences between China and South Korea. This study adds to the knowledge base of how MNEs manage performance appraisals in their foreign subsidiaries.     

Navigating the New Normal: Political Affinity and Multinationals’ Post-Acquisition Performance

The New Normal in the international business landscape reflects a world challenged by economic volatility and political hostilities. This suggests increased political risk, even for MNEs operating in developed markets. We use the legitimacy-based view of political risk to examine how political affinity between host and home markets may contribute to an MNE’s post-acquisition performance in a developed market. A high degree of political affinity signifies aligned national interests thus reducing legitimacy concerns faced by MNEs during post-acquisition integration. Based on cross-border M&A deals focused on U.S. targets completed by MNEs representing 45 countries between 2004 and 2012, we find that MNEs from countries with greater political affinity to the U.S. experience better post-acquisition performance. We also investigate two country-level factors that intensify the threat to legitimacy; the MNEs’ home market economic status and the presence of a financial crisis in the host market. Our findings indicate that political affinity mitigates risk for MNEs originated from emerging economies much more than for MNEs originated from developed economies, whereas a financial crisis reduces the benefit of political affinity.     

Recruitment and selection in Chinese MNEs

This article explores HRM issues in Chinese multinational enterprises (MNEs), in particular, the recruitment, selection and repatriation of expatriate management in ten Chinese MNEs. Owing to the rapid growth of internationalization of Chinese firms, IHRM in the Chinese context has been attracting both academic and practitioners' interest. The approach of Chinese MNEs to IHRM has become an urgent area of management study. This article represents one part of the results of a recent study of Chinese IHRM. It concludes that, even though recruitment and selection policies and practices in Chinese MNEs are more progressive in adopting modern HRM concepts than is the case in domestic Chinese firms, current practices are still divergent from those of major Western MNEs.     

Not all expatriates are the same: non-traditional South Korean expatriates in China

Non-traditional expatriates, those expatriates whose assignments tend to be shorter, involve specialist work and often do not involve families relocating, have not been the subject of sustained research. What we do know about this group of expatriates has been mainly derived from research on Western multinational enterprises (MNEs). The current study explores the trend towards, and the management of, these non-traditional expatriates in South Korean MNEs operating in China. Using a qualitative case study approach involving in-depth, semi-structured interviews with expatriates and local managers, this study reveals that the use of non-traditional expatriates has been on rise in the sample MNEs and that they undertake similar roles to the long-term expatriates including control, problem-solving, management development and knowledge transfer. This shift towards non-traditional expatriation has been brought about by the decreased need for long-term assignments and the desire to gain more organizational flexibility. We conclude that such changes represent a strategic response to the longer term issues surrounding traditional expatriates such as family, career and expatriate failure. Such a shift is not without problems as the research found that there was a lack of formal recruitment and selection processes and that training for non-traditional expatriates was limited.     

Environmental Behavior and MNEs: A Strategy Pulled by Stakeholder Engagement

This research attempts to examine how multinational enterprises (MNEs) from regulated and non‐regulated industries shape their environmental strategies with regard to environmental disclosure and performance. Results reveal that regulated (non‐regulated) MNEs display worse (better) environmental performance levels and disclose less (more) environmental information than MNEs operating in non‐regulated (regulated) environments. We argue that this strategy is set as an answer to cope with legitimacy problems faced by MNEs as well as to respond to increased demands from stakeholder groups. We contend that our findings may contribute to existing literature and be of relevance for practitioners. Copyright © 2017 John Wiley & Sons, Ltd and ERP Environment     

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.