Mind the gap: the role of HRM in creating,capturing and leveraging rare knowledge in hostile environments

Abstract

Multinational enterprises (MNEs) have increasingly entered markets in less developed regions of the world afflicted with weak institutions and political conflict. Some are characterised by ‘extreme’ cases of institutional voids and terrorism, creating a hostile environment for the organisation and its people. This in-depth qualitative study of a service company, a European telecommunications joint venture in Afghanistan, seeks to shed light and build theory on the human resource management (HRM) dimension of managerial learning and knowledge acquisition in hostile environments, as part of the MNE’s organisational learning process. Specifically, we investigate how knowledge gaps can be addressed through supportive HR practices, and how knowledge classified as ‘rare’ can be captured and leveraged through HR interventions such as debriefing. We stipulate that HR practices and interventions adapted to hostile environments, together with expatriate willingness to learn and share new knowledge, play a critical role in the creation, capturing and leveraging of rare knowledge for subsequent use by the MNE in other hostile locations. The study has implications for international HRM and organisational resilience, under the proposition that competitive advantage can be gained through exploitation of rare knowledge acquired in hostile environments.     

Collectivism and the Management of Industrial Relations In Greenfield Sites

Patrick Gunnigle examines management approaches to industrial relations in newly established (‘greenfield’) companies in the Republic of Ireland. He focuses particularly on recent empirical findings on trade union density and recognition and on the role of employer organisations. the evidence presented points to newly emergent patterns of industrial relations management which diverge from the pluralist model. However, in only a minority of cases could these be classified as ‘soft’ human resource management. Indeed a number of organisations studied adopted industrial relations styles which more closely approximated to ‘hard’ HRM. It would appear that the emerging pattern is one of higher individualism and constrained collectivism. the findings also point to the emergence of a vibrant non-union sector among greenfield companies. It is argued that this trend is likely to be accentuated by the increasing number of companies successfully pursuing the non-union route. Equally, the current national industrial policy focus on high technology industries and internationally traded services is also likely to reinforce growth in the non-union sector. A number of factors which may help to arrest this trend are identified, particularly the corporatist structures characteristic of Irish industrial relations and the traditional acceptance of trade unions as legitimate bargaining partners.     

High reliability Human Resource Management (HRM): A system for high risk workplaces

High Performance Work Systems (HPWS) research is based on the search for the most suitable bundle of complementary practices appropriate for the organisation and its operating environment. We examine the contents of a HPWS in organisations seeking impeccable safety and reliability as their foremost ‘performance’ outcome. We propose a ‘High Reliability HRM’ framework, and examine the degree of implementation in a three case study of Australian state emergency services organisations. The findings highlight HRM practices inconsistent with the framework, and illustrated by rich interview accounts, we detail associated negative implications for employee behaviour and attitudes. We contribute to HPWS research by empirically examining how reliability-seeking organisations conceptualise and implement HRM systems. This study emphasises how inconsistency in HRM practice bundles can pose a threat to reliable service provision, a critical finding for emergency services and reliability-seeking organisations more broadly.     

Challenging ‘strategic HRM’ and the relevance of the institutional setting

One of the more fundamental aspects of the ongoing debate about the added value of HRM relates to ‘best’ practice versus ‘best‐fit’. Best practice suggests the universal success of certain HR practices, while best‐fit acknowledges the relevant impact of contextual factors. We argue that differences in embeddedness and in institutional settings between, for example, countries affect the nature of HRM. To understand this phenomenon, we are in need of additional theory. In this article we will use the theory of new institutionalism as a better way to understand the shaping of HR policies and practices in different settings. After a concise review of the latest debates in the area of strategic HRM, in which the resource‐based view is the dominant perspective, we turn to an analysis of HRM in different institutional settings, which suggests the need for additional theory: ie new institutionalism. We offer propositions to explain the impact of different institutional mechanisms, including coercive, normative and mimetic ones, on the shaping of HR policies and practices in organisations. The remainder of the article then focuses on possible implications for practitioners, theoretical implications for future research, and challenges for strategic HRM.     

The effect of institutional pressure on cooperative and coercive ‘green’ supply chain practices

Little is known about buyers׳ decisions to implement ‘green’ supply chain management (GSCM) through either coercive or cooperative approaches. This is an important area of study as buyers are increasingly expected to improve and ensure that their purchasing and supply chain practices are environmentally sound. Pressuring and monitoring suppliers to become more environmentally responsible dominates the coercive approach to GSCM. In contrast, a cooperative approach is associated with training and helping suppliers to become ‘greener’. In this study we draw on institutional theory, and argue that the decision to implement such practices and the choice between them will be contingent upon institutional pressures (mimetic, normative and coercive), and downstream customer requirements for GSCM. Using primary survey data from 198 UK-based companies, we find compelling evidence to suggest that coercive and cooperative GSCM practices are driven by substantially different factors. Institutional pressures significantly determine cooperative approaches to GSCM while coercive practices are, to a larger extent, driven by downstream customer demands. Customer pressure is also found to moderate the influence of institutional factors on cooperative practices; no significant effect was found for coercive practices.     

Pursuing sustainable development through green entrepreneurship: An institutional perspective

Pursuing sustainable development through green entrepreneurship has been advocated, conceptualized, and empirically examined in the recent environmental management and entrepreneurship literature. However, green entrepreneurs are embedded in institutional environments that may discourage them from embracing sustainable development because of the “paradox of embedded agency.” How can a firm overcome the liability of such an agency issue and escape what has become known as a “green prison”? This study proposes that, because international venturing exposes firms to foreign institutions, it provides them with opportunities for institutional learning. Thus, we examine how international venturing influences green entrepreneurship which, in turn, impacts firm performance. Specifically, based on institutional theory, this study develops a firm-level green entrepreneurship framework with three dimensions: green initiatives (a firm's active adoption of green practices), received government green support (benefits that a firm gains from the government by adapting to governmental incentives, programs, and policies related to green practices), and green political influence (a firm's attempts to influence legislation that enacts laws, rules, and regulations related to green practices). The results obtained by analyzing 152 firms that engage in international venturing activities and 151 firms that do not show that international venturing is positively associated with green initiatives and government green support while these two factors further directly enhance firm performance and mediate the effects of international venturing on performance.     

Do industries matter?

This paper poses the question ‘Do Industries Matter?’ in order to shed light on what observation-based Industry Studies researchers can offer empirical economists using large-scale datasets. I argue that industries matter from three distinct perspectives. First, the methodological approach in Industry Studies adds value to economists' normal activity of testing and generating theory. Data collected using Industry Studies methods can lead to new ideas and theory-building. Second, industries matter as they provide an institutional and historical context in which to study firms and workers. Such context improves the interpretation of how and why different practices and institutions fit together in specific industries. Third, recognizing differences in what is meant by an industry improves our ability to interpret specific ‘industry dummies’ in regressions.     

A risk management model for research on expatriates in hostile work environments

Abstract

Although much has been written about the causes of expatriate adjustment, more research is needed on managing the fear and anxiety experienced when expatriates work in hostile environments. The perceived risks of terrorism, kidnapping, crime, and civil unrest can have negative effects on the performance of expatriates and the organizations that employ them. While research has begun to examine expatriates’ stress in hostile environments, there is comparatively little research on the effectiveness of management practices that can reduce such stress. We integrate the expatriate adjustment, psychological contract, and risk management literature to develop a model that can guide efforts to reduce environmental stress and its negative effect on expatriate adjustment. Specifically, we build on recent work by Bader and colleagues to develop propositions to guide future research with the aim of improving the conditions of expatriates working in hostile environments.     

Sacred alliance or pact with the devil? How and why social enterprises collaborate with mainstream businesses in the fair trade sector*

Abstract

This paper uses institutional theory to highlight different patterns of cross-sector collaboration from the perspective of social enterprises. Specifically, it explores how and why social enterprises interact with mainstream businesses and to what extent their collaboration patterns reflect a vision of how their social mission should be implemented and institutionalized. The empirical analysis is derived from a qualitative study of ‘fair trade’ – a hybrid model created by social enterprises and using market mechanisms to support small-scale producers in developing countries and to advocate for changes in international trading practices. The findings highlight three strategies used by fair trade social enterprises to manage their interactions with mainstream businesses: sector solidarity, selective engagement, and active appropriation. This paper suggests that each strategy is motivated by a different vision of how best to articulate the social mission of fair trade via specific types of collaborations. It also notes how each vision has a distinct pattern of institutionalization at the field level. This paper adds to the emergent literatures on social enterprise and social entrepreneurship, fair trade, cross-sector collaboration and hybrid organizing.     

Fostering productive entrepreneurship in post-conflict economies: the importance of institutional alignment

Abstract

The aim of this article is to examine the impact of institutional development on entrepreneurship in post-conflict environments. Drawing on in-depth interviews with Kosovar entrepreneurs the article highlights how the experience of fostering entrepreneurship in a post-conflict, new born state is distinct from transition economies. The article finds that Kosovo has not encountered the same institutional challenges which have stymied entrepreneurship in transition economies which have been hampered by ‘path extension’ of institutions. Instead there has been a ‘path break’ resulting in a reshaping of formal and informal institutions as supportive of entrepreneurship. However, while positive, the prevailing nature of much entrepreneurial activity is localized with only a limited impact on economic growth. The article concludes by making a number of contributions to institutional theory and policy.     

Localization of staff in a hostile context: an exploratory investigation in Afghanistan

Abstract

Hostile environments pose a distinct threat to international organizations and their staff and yet they are under researched within the literature on IHRM. Localization of staff may present a means to manage some of the risks and also to provide the resources needed to achieve competitive advantage. Drawing on the resource-based view and institutional theory, we explored resource- and capability-based and institutional influences in relation to the decision of whether to localize professional staff in a hostile environment (Afghanistan). Using in-depth semi-structured interviews with representatives from four organizations in Afghanistan, our investigation identified new influences on localization at the societal and organizational level. These include ongoing security issues as well as influences on localization such as corruption, impartiality and the need for outside experiences as well as perspectives not identified in previous work. In addition, we emphasize the importance of both picking appropriate valuable local human resources and using appropriate internal capabilities to develop and deploy them in such a way to build firm-specific assets which are also rare, inimitable and non-substitutable, thus leading to sustainable competitive advantage.     

Lost and Found in Translation: How Firms Use Anisomorphism to Manage the Institutional Complexity of CSR

Prior research on the internationalization of firms from emerging countries has fruitfully invoked institutional theory to emphasize the legitimacy benefits that firms that obtain from showing isomorphism with international norms such as Corporate Social Responsibility (CSR). Without denying the intuitive appeal for these firms to communicate acceptance of CSR, we suggest that firms face a legitimacy trade-off, where the hoped-for legitimacy benefits of isomorphism must be weighed against other home-country institutional considerations. We advance and test this notion that firms will navigate this institutional complexity by engaging in anisomorphism, i.e., espousing general acceptance with international values but with selective ‘translation’ based on home country differences. We test our predictions by analysing firms' communication of CSR, using a unique dataset comprised of 245 firms observed over the period from 2000 to 2018. Consistent with our predictions, we find that firms from countries more reliant on natural resource extraction (e.g., mining and fossil fuel industries) de-emphasize the environmental component of CSR, and firms from more autocratic countries de-emphasize the human rights component of CSR. Additionally, and consistent with our presumption of firms' weighing the international versus home-country legitimacy trade-off, we find that these main effects are sensitive to changes in firms' levels of internationalization.     

International entrepreneurship and the small business

The topic of ‘international entrepreneurship’ is becoming increasingly popular with researchers concerned with examining how international and entrepreneurial activities intersect when people in organizations engage in pro-active brokering and risk-taking behaviour in cross-border contexts. Some caution is needed in over-generalizing the meaning and significance of international entrepreneurship – especially in relation to small businesses. Not all entrepreneurial risk-taking, brokering and opportunity-seeking activities lead to internationalization (as the statistics on small business international activities indicate). This might suggest then that the only truly internationally entrepreneurial firms are those that are ‘born global’. However, their entrepreneurial activities are more ‘spatial’, concerned with what can be constructed again in relation to global markets rather than in relation to the local/regional context in which the business is located. For small firms that internationalize a few years after start-up (late starters), processes of international entrepreneurship are different. For ‘later starters’, international entrepreneurship is distinctive in that it is characterized by extending and modifying entrepreneurial understandings and practices that have been socially constructed in relation to the local and regional context in which the small firm is located.     

The adoption of international best practices in a Western culture: East meets West

Contemporary organizations facing changing economic and strategic realities have considered many models of organizational performance, in particular those based on ‘actices’odels of best practice have emanated from the USA, some European countries and Japan; however, the question remains –ternational best practices be transferred to Australia or elsewhere? Since companies in Japan, in particular, have been seen as harbingers of these best practices, we compare the level of adoption in Japanese and non-Japanese companies in three Australian industries. Differences between Japanese and non-Japanese companies were more apparent in the automotive industry with only a few differences found for the information and tourism industries. The main differences between the two ownership categories were in areas of unionization and management–elations, that is, areas that may be influenced more by institutional arrangements than by cultural differences. Perhaps the most interesting finding from the comparative research was that there were relatively few differences between the Japanese and non-Japanese companies. These characteristics include: organizational structure, labour turnover, teams as part of the organizational structure, levels of training, use of ringi-style decision making, security of employment, employee welfare schemes, the use of and success with performance appraisal and performance-related pay, and a wide range of quality systems. The key pillars of Japanese management are not being transferred, and we cannot expect to see identical arrangements regarding other management practices. But the differences between Japan and western countries such as Australia are very gradually declining.     

The role of institutional and intermediary forces in shaping patterns of employee involvement and participation (EIP) in Anglo-American countries

Most studies of employee involvement and participation (EIP) focus on organisation level, which is understandable given that employers have plenty of choice about how it should be implemented. However, even the most lightly regulated economies do not operate in a complete institutional void as some forms are regulated while government-funded initiatives also promote EIP. Employers' organisations, professional associations and other specialist organisations also operate as intermediary forces between the state and individual employers to shape EIP. However, these forces have not been analysed, an omission which seems strange given the ‘space’ available for occupation in lightly regulated economies. This paper compares the role these different forces play in shaping patterns of EIP at organisation level in four Anglo-American countries (the UK, Ireland, Australia and New Zealand) through interviews and documentary evidence at national, intermediary and organisation levels. While ‘hard’ institutional forces have some influence on representative EIP, ‘soft’ institutional and intermediary forces are more likely to shape EIP because they allow employers choice and flexibility in implementation and fit with national business systems in these countries. However, given such interventions are voluntary, they are also susceptible if government priorities change or employers are attracted by the next management fad.     

Human resource management and organizational strategies in German- and US-owned companies

The development of the international economy over the past twenty years has bred considerable diversity in the form and substance of employment relations (labour-management relations, human resource management practices) throughout the world. Cases of ‘social partnership’ are today found in the ‘free market’ United States economy; some companies operating in Germany's ‘social’ market economy are rejecting traditional forms of social partnership in the name of more unilateral strategies.

This paper examines (a) the extent to which ‘strategic diversity’ – variation in human resource strategies and policies – is possible within the heavily institutionalized, co-operative and codeterminative German economy, and (b) how managers perceive the effects of different kinds of HR approaches on organizational change and industrial adjustment. It is based on empirical evidence drawn from seven large chemicals companies operating in Germany – three of them US-owned firms and four German-owned.

The main conclusions are that considerable strategic diversity is possible within the German context, and that managers perceive distinct costs and benefits to specific aspects of the typically American ‘unilateral’ style and the more German ‘negotiated’ approach to structuring the relationship with human resources. The paper concludes with a discussion of the implications of these trade-offs for the transferability of HR strategies across international borders, giving special attention to policies to avoid some of these potential costs.     

A cross‐cultural examination of the relationships among human resource management practices and organisational commitment: an institutional collectivism perspective

Previous research has shown that human resource management (HRM) practices vary across cultures. However, little research has empirically compared the effects of various HRM practices on firm‐level or individual‐level outcome variables across cultures. Drawing upon psychological contract theory and the literature on cultural values, the present study examined the effects of three organisational‐level HRM practices on individual organisational commitment in a survey of 2424 individuals in 120 organisations located in four countries and three industries. Based upon the GLOBE study, we classified the four countries into two groups – high versus low institutional collectivism. The results of our hierarchical linear modelling (HLM) analyses found significant differences in the effects of organisational‐level HRM on individual organisational commitment across cultures for two of the three HRM practices included in our model: training and teamwork. We also found partial support for differences across cultures for the effects of the third HRM practice: employee involvement in decision making. Overall, our results support the utility of theoretical and empirical models that address multiple levels of analyses to better understand the mechanisms through which the HRM‐performance link takes place across national cultures.     

Managing temporary workers: work identity,diversity and operational HR choices

Strategic HRM theory argues that organisations should distinguish different types of employees according to their value and availability. We argue that this has resulted in an underestimation of the importance of specific HRM practices in relation to temporary employees. Building on theoretical work that discusses the employment relationship for temporary employees, the process of identification with the organisation and different ways of managing diversity, we distinguish three approaches to the operational management of temporary employees. We explore two cases that reflect opposite ends of the scale. They illustrate the value of the theoretical framework and substantiate the claim that, even after the strategic choice for a lean, distanced and uninvolved temporary ‘employment mode’ is made, different operational HRM practices lead to differences in performance.     

Internationalisation of British fundraising charities: a two-phase empirical study

• A two-phase mixed methods (qualitative and quantitative) study was undertaken to identify and then to confirm the main dimensions and the principal antecedents of the internationalisation behaviour of a sample of British charities known to engage in foreign operations. Specifically the investigation examined the factors that explained charities' decisions to enter foreign countries, the motivations and practical methods involved and the time periods elapsing between first and subsequent entry. Outcomes were compared against theories of internationalisation developed by previous studies completed in the commercial domain. The approaches to internationalisation adopted by 15 organisations were established, and the generalisability of these approaches tested via a mail survey that elicited 238 responses. Least squares, Cox time and logistic regression analyses were completed to determine the factors that significantly influenced the extents and timings of the sample members' international activities. It emerged that some but not all of the considerations that have been found to affect the internationalisation of commercial firms also impacted on the patterns of internationalisation pursued by many of the sample organisations, especially managerial inclinations and participation in networks. However, psychic distance was seemingly irrelevant to charities' internationalisation decisions. Rather, a construct termed for present purposes as ‘philanthropic imperative’ constituted a crucial determinant of behaviour. The results imply that charities' levels of involvement in networks should be encouraged and that charity support organisations need to develop their institutional networking facilities. Also, charity managers should question whether the most favoured mode of entry to foreign countries (i.e. the ad hoc project partnership (PP)) is necessarily the most effective.

Copyright © 2009 John Wiley & Sons, Ltd.     

The management of an ageing workforce: organisational policies in Germany and Britain

Demographic change as well as pressure from the European Union and national government are forcing organisations to change age‐discriminatory HRM approaches. Based on a qualitative analysis of eight British and German organisations, we found that commitment, scope, coverage and implementation of age management differ due to country‐specific institutions, particularly government, in nudging employers and unions to preferred age practices. This confirms the path dependency concept suggested by institutional theory. Nevertheless, we also found that industry‐specific factors mediate the implementation of age management, leading to some convergence across countries. This indicates that organisations deviate from the institutional path to implement practices that they deem important.