Foreign remedies for local difficulties: the case of three Scottish manufacturing firms

Literature on Japanese transplant manufacturing firms in the automotive sector often emphasise the importance placed on attitude as opposed to skills in the hiring decisions for line workers. In this paper, a case study of one second-tier components supplier for a major Japanese automotive assembler in the Midwestern United States provides the opinions of senior managers and human resource associates regarding recruitment and selection practices. In-depth interviews, carried out over a two-week period in August 2000, are used to develop an understanding of the recruitment and selection process for line workers as well as to investigate the desired skills and value of previous Japanese experience. Results of the case study analysis are compared with two models from the literature: (1) a model of recruitment and selection at Japanese automotive-related firms in Japan and (2) a model of recruitment and selection at Japanese transplant automotive-related firms abroad. Deviations from the two models point not to a new paradigm of ‘second-generation’ Japanese transplants – those that have moved into regions quite familiar with Japanese firms and related management and production methods – but rather to overall weaknesses in the stereotypical models. Managerial opinions within the case study firm place limited value on familiarity with a Japanese environment, considering such experience secondary to attitudes and work ethics that are in line with the philosophy of the case study firm.     

Market orientation,HRM importance and competency: determinants of strategic HRM in Chinese firms

This study examined three factors leading to a firm's adoption of strategic human resource management (SHRM): market orientation, HRM importance and HRM competency. Using a sample of firms from China, empirical results showed that the three factors are significantly related to a firm's adoption of SHRM. Given the transitional nature of the Chinese economy, the moderating effects of ownership types and firm size were also investigated. However, the moderating effects were not as strong as predicted. Managerial implications and directions for future research of SHRM in an emerging economy context are discussed.     

HRM in project‐intensive firms: Changes and challenges

One of the most profound organizational changes currently under way is the application of project‐based structures within and between firms. This change is happening in both growth and mature industries. Several management scholars have taken interest in the reasons why firms adopt proj‐ect‐based ways of working. However, the effect of project‐based organizing on the firm's HRM is a recurrent problem and a challenge to many companies. We develop a framework for the analysis of HRM in project‐intensive firms. Based on a study of four companies and the transformation of their organizational structures and processes, we identify four managerial issues and a number of questions that must be addressed to improve HRM in proj‐ect‐intensive firms. © 2006 Wiley Periodicals, Inc.     

HRM in entrepreneurial firms: A systematic review and research agenda

This review aims at synthesizing and assessing the literature on human resource management (HRM) in entrepreneurial firms. Our review over the time period 2004–2020 is relevant as entrepreneurial firms have a central role in the economy and are important for technological advancement and employment. Furthermore, managing entrepreneurial firms differs significantly from managing established firms. Using a systematic review method, we develop a framework of HRM in entrepreneurial firms, in which we present the current state of the literature, accounting for antecedents, outcomes, and the organizational context. Importantly, we also offer a compelling research agenda for future work on HRM in entrepreneurial firms.     

Managing radical product development in large manufacturing firms: a longitudinal study

This study explores and documents the processes by which large manufacturing firms develop and produce radical products. Seven projects from five Fortune 500 firms were analyzed over a 3-year period. Through the use of these case studies, we found common themes emerging in the way these firms manage their new product development (NPD) process in this turbulent environment. Our observations suggest that these high levels of uncertainty result in several unique challenges in developing the project, especially in the areas of managing functional integration and finding a divisional home for the emerging product.     

Highways and productivity in manufacturing firms

Using a geo-coded micro-level panel dataset for Spanish manufacturing firms, I estimate the effect of access to highways on firm-level productivity. To identify the causal effect of highways, I have relied on different fixed-effects specifications, instrumental variables and controls for geography, geology and history. Since highways also attract economic activity, leading to local density increases, which in turn could affect productivity through agglomeration benefits, I also present estimations that control for local employment densities. The results show that highways raise firm-level productivity directly and beyond the effect of density. Additional results show that highway benefits are unevenly distributed across sectors and space.     

Explaining firms efficiency in the Ivorian manufacturing sector: a robust nonparametric approach

In this paper, we provide an analysis of C?te d’Ivoire firms performances and study the impact of qualitative external environmental factors on firm efficiencies. We adapt the one-step nonparametric robust methodology of Daraio and Simar 2005 to take in account qualitative environmental factors and we also compare the differences of behavior among two sub groups of firms characterized by different levels of technology. The sensitivity of our conclusions to environmental factors is analyzed using a bootstrapped test. We also check the robustness of our results upon time on two different years of observations.     

Future HRM challenges for multinational firms in Eastern and Central Europe

This article identifies and evaluates human resource challenges for multinational companies in transitional economies in Central and Eastern European countries. The nature of transitional economies and HRM in post‐socialist societies presents a range of issues. These pertain to the lingering effects of the previous institutional environment and state‐directed political economies that retain influence on the type of HRM practices adopted. Challenges of talent attraction and retention, remuneration systems, diversity and cross‐cultural management are considered.     

Import-led technological capability: a comparative analysis of Indian and Indonesian manufacturing firms

This research investigates the critical elements that affect the ability of firms in developing countries to cultivate their technological capability through imported technology. Based on resource-based theory, we propose both internal and external factors contribute to technological capability of the recipient firms. Technology planning and control, market orientation, training and number of technical manpower were the internal factors considered in this study. Government support and national technology infrastructure are the external factors proposed to affect the technological capability of firm. Data collected from Indian and Indonesian manufacturing firms reveals that R&D investment, and availability of technical personnel; the transfer channels; government’s involvement; and the firm’s learning culture are significant contributors to the technology capability process. Also, the acquisition of mature technology just to boost production capacity or improve product quality contributes very little to the development of technological capability.     

Technological spillovers and productivity in Italian manufacturing firms

We study whether a firm’s total factor productivity dynamics is positively influenced by its own R&D activity and by the technological spillovers generated at the intra- and inter-sectorial level. Our approach corrects simultaneously for the endogeneity and the selectivity biases introduced by the use of a firm’s own R&D as a regressor. The evidence suggests that a firm’s involvement in R&D activities accounts for significant productivity gains. Firms also benefit from spillovers originating from their own industries, as well as from innovative upstream sectors.     

Strategic HRM in China: Configurations and competitive advantage

The strategic HR literature suggests that a firm will perform better through internal appropriate fit among HRM practices (the configuration fit) and through external appropriate fit between a firm's HRM practices and business strategy. The present study adopts a configuration approach to identify unique patterns of HR practices and business strategy that are posited to be maximally effective. The proposed relationships were empirically tested by surveying with a sample of 241 business firms in Guangzhou, South China, to find out the extent that four HR configurations could be successfully adopted in the Chinese context. The results revealed that HR configurations are significantly related to effect in predicting overall outcome performance and turnover, but not significantly related to effect on sales growth and profit growth rates. Research findings showed not only competitive strategies are significantly related to effect on HR configurations. The results also showed significant interaction effects between HR configurations and business strategy in their effect on profit and sales growth. These results further extended support for a contingency perspective in strategic HRM to the Chinese context, with significant practical implications for managing HRM in China. © 2008 Wiley Periodicals, Inc.     

Applying real options theory to HRM: an empirical study of IT software firms in India

Environmental uncertainties can impact the market value of a firm's human assets both positively and negatively, and make return on human assets uncertain over time. However, the strategic human resource management (SHRM) literature has so far focused almost exclusively only on the upside value of human assets of a firm. Real options theory can provide the process heuristics as well as the economic logic for guiding investments in human assets to create sustainable market value for firms operating in uncertain environments. In spite of the growth in popularity of the real options approach, no meaningful progress, however, has been made towards application of this approach to HRM. This study, using data from 108 IT software development firms in India, seeks to address this gap and make three important contributions to the SHRM literature: (1) operationalise the concept of HR options by identifying the HR practices that possess option value; (2) investigate how use of HR options affects firm-level performance; and (3) develop and test a causal model that links the various types of HR options that firms use to exploit uncertainties faced by them with the firm-level operational and financial outcomes. The results support the central hypothesis of the article that use of HR options by firms operating in uncertain environments would have positive impact on their operational and financial performance. Significant differences were observed in the nature of linkages between different types of HR options used to address different types of uncertainties, and the operational and financial performance of the firm.     

HRM configurations in Korean venture firms: resource availability,institutional force and strategic choice perspectives

To examine various human resource management (HRM) configurations and their explanatory variables, we generated several hypotheses and tested them with data collected from Korean venture firms. For these purposes, we first suggested two ideal types of HRM configuration: a control-based human resource system (CBHRS) and a high-performing human resource system (HPHRS). Depending on contextual variables, firms are expected to make a choice between the two or among their variants. To generate hypotheses, we employed three theoretical perspectives: resource availability, institutional force, and strategic choice. To test the hypotheses, we collected data from 464 venture firms in Korea. From the data, we derived five different HRM configurations: Cost-minimizing type; Paternalistic type; Inducement type; Investment type; and Transitional type. Both the Cost-minimizing type and the Paternalistic type are classified as part of the CBHRS, the Inducement type and the Investment type are considered to be part of the HPHRS, and the Transitional type is taken to be mixed. We found that all three theoretical perspectives partly explained the selection of HRM configurations. Some related issues are raised and discussed in the final section.     

A model and process for redesigning the HRM role,competencies, and work in a major multi-national corporation

This article presents a model and a detailed process for redesigning the human resources (HR) function by contracting with line executives for new roles and by upgrading the competencies of the human resource management staff while reengineering the HR delivery systems. The experience of a large, successful company that developed and implemented the process is described. The article argues that the use of “best practices” contributes less to creating a world-class human resource management team than to redefining the fundamental partnership role supported by the line organization. Partnering is defined in an operational manner using the HR grid. © 1995 by John Wiley & Sons, Inc.     

Wage differentials across firms: an application of multilevel modelling

Multilevel modelling techniques are applied to a dataset that matches firms and workers, to pinpoint and explain contrasts among company wage policies. Results indicate that wage differences across firms are statistically significant, affecting every parameter of the pay policy (returns to schooling, tenure, experience, the penalty imposed on newly hired workers and on women). Gross labour productivity, average schooling in the firm, firm size and economic sector are relevant forces shaping the contrast between employers' pay policies. Copyright © 2000 John Wiley & Sons, Ltd.     

HRM implementation by multiple HRM actors: a social exchange perspective

Abstract

In this study, we understand HRM implementation as a social process that depends on the social exchange relationships between line managers and both HRM professionals and employees. As such, we offer a fresh approach to understanding HRM implementation by concentrating on the social exchange among HRM actors. We do so by investigating to what extent these exchange relationships influence HRM implementation, as reflected in employees’ perceptions of the presence of HRM practices and their affective commitment. We collected multilevel data from two sources (line managers and employees) and in two phases in a Dutch engineering firm, and obtained fully matched manager – employee information from 75 employees and 20 line managers. Our results show that employees perceive a larger number of HRM practices when they have a good relationship with their line managers and when their line managers are motivated to implement HRM practices. Line managers, in turn, reciprocate perceived support from the HRM department with greater motivation to implement these practices. We conclude that because HRM actors engage in social interactions, HRM practices will be implemented at the organizational level because employees perceive the presence of HRM practices and then reciprocate this with affective commitment.     

Marketing in medium-sized manufacturing firms: The state-of-the-art in France and in Quebec

An examination of the relationship between marketing and SMEs raises two kinds of questions: the first relates to the categories of SMEs studied, and it goes without saying that their responses will depend on their size (very small, small, and medium); the second depends on the elements likely or not to bring out a marketing approach. In fact, we can infer a large part of this approach from the answers having to do with segmentation practices, positioning, and information research. These three practices constitute the foundation of this approach. For all that, to ask questions directly (especially with regard to segmentation) would lead to biased responses. Taking these premises into account and with understanding of marketing behaviour in the medium-sized firms as an objective, we conducted two surveys in two locations, France and Québec (Canada), in which only enterprises with 50 to 250 employees were retained. The results show that if the marketing approach of the medium-sized firms is always focused on client distinction (more than on the market as such), competition leading to positioning is very much a part of their preoccupations; finally, these enterprises commonly practice commercial intelligence. This implies structuring commercial activity in general and marketing in particular, the two not always well delimited. These last two traits differentiate them from the other categories of SMEs, the very small enterprises (VSEs) and the small enterprises (SEs).

External linkages and product innovation in small manufacturing firms

The requirement for small firms to collaborate, as a means to supplementing and complementing limited internal resources, has dominated much of the academic and policy debate on regional development and small firm innovation throughout the late 1980s and 1990s. However, relatively little empirical work has sought to look further than simple frequency enumeration - noting that the most innovative and better performing firms are generally more likely to have links with external organizations. Based upon a sample of 228 small West Midlands' manufacturers, this study considers the source, function, geography and strength of innovation-related co-operation. While the general findings point to innovators making greater use of external linkages, of certain types and in particular directions (notably the preponderance of vertical value chain linkages), the results are less emphatic than might have been anticipated. This leads to consideration of the factors contributing to and impeding joint innovation and the firms' perceptions of the impact of innovation. From this, it appears that much of the observed difference between innovators and non-innovators lies in less objective measures. The data suggest the importance of inter-personal dynamics, attitude and expectations in facilitating successful collaboration.