An innovative global management staffing system: A competency‐based perspective

Significant demands are imposed on corporate management of multinational corporations (MNCs) to develop a strategic orientation of their global human resource management systems (SGHRM). This strategic orientation, which should balance the need for both global stability and local flexibility, necessitates a more pronounced multicultural management membership. The competency‐ based SGHRM system proposed in this paper combines an innovative global management staffing practice of inpatriating foreign managers with the extant practice of expatriating domestic managers. The competency‐based criteria are used to identify global manager candidate pools capable of executing an integrated global management system © 2000 John Wiley & Sons, Inc.     

An integrative framework of strategic international human resource management

The globalization of business is making it more important than ever to understand how multinational enterprises (MNEs) can operate more effectively. A major component of this understanding appears to be the field of human resource management and, in particular, the field of international human resource management (Brewster, 1991; Hendry, 1992; Desatnick and Bennett, 1978; Dowling, 1986; Dowling and Schuler, 1990; Evans, 1986; Evans, 1989; Laurent, 1986; Tung, 1984). The trend over the past few years has been to identify the linkage of human resource management with strategy and offer an understanding of how single country or domestic human resource management can facilitate organizational understanding and effectiveness (Wright and McMahan, 1992). In this article we attempt to extend this line of work into the international arena. We do this by offering a framework of strategic international human resource management (SIHRM). Anchoring SIHRM in the strategic components of MNEs, namely their interunit linkages and internal operations, strategic aspects of international human resource management are described. Using several theoretical bases, numerous propositions are offered. These propositions reflect the single and multiple influence of the strategic components of MNEs and several exogenous and endogenous factors on SIHRM. The intention is to offer a framework that can serve both academics and practitioners in furthering our understanding of strategic international human resource management.     

MNC practice transfer: institutional theory,strategic opportunities and subsidiary HR configuration

Human resource (HR) practice transfer is an important topic in the domain of strategic international human resource management (SIHRM). Previous research in practice transfer has emphasized the challenges arising from the institutional distance between the home and host countries. However, potential opportunities due to this distance have been largely overlooked. Shifting the focus away from looking at institutional distance as a constraint, we examine the possibilities of strategic opportunities that exist because of institutional distance. We argue multinational corporation (MNC) subsidiaries can exploit these opportunities to gain competitive advantage. Building upon SIHRM literature, institutional theory and the resource-based views, we propose a conceptual framework explaining how institutional environments present strategic opportunities. We argue that these strategic opportunities are most abundant in the case of moderate institutional distance between the two countries. Building upon the conceptualization of strategic opportunities, we propose a model of subsidiary HR configuration, and then we explain how an HR configuration could be a source of competitive advantage. Further, we examine the role of MNCs' overall SIHRM orientation in relation to the identification and exploitation of strategic opportunities.     

A theory-based framework for strategic global human resource staffing policies and practices

As multinational enterprises increasingly globalize their operations, managing international human resources strategically becomes a critical factor contributing to overall organizational performance. The strategic management of international human resources has received extensive attention, focusing on staffing issues related to expatriate assignments. However, empirical findings indicate limited success of expatriation as an effective method for managing the breadth of international human resource opportunities. As market opportunities increasingly shift to countries with high cultural distance from the parent organization and as organizations evolve their strategic orientation from multinational to global activities, it appears that an exclusive reliance on expatriation-based staffing will impede effective management of international human resources staffing. The objective of this article is to review and clarify a theory base that can support a range of international human resource staffing systems that might be implemented in a global environment. This discussion uses the combined perspective of agency and expectancy theories and discusses conditions under which specific strategic staffing choices might be most effective.     

Strategic Global Human Resource Management: The Role of Inpatriate Managers

The need for highly qualified multicultural managers will increase as more organizations globalize their operations. These global managers may be perceived as organizational resources and, therefore, a resource-based view of human resource management is utilized. At the same time, relational view of human capital provides insight into the value of managers who have unique local market knowledge (i.e., social knowledge). By integrating the two aspects of the resource-based view, one can develop a dynamic capabilities approach to staffing global assignments. Within this integrative theoretical perspective, inpatriate managers (i.e., host or third country managers who are transferred into the home country organization on a semi-permanent to permanent basis) can be explored as a potential pool of uniquely qualified global managers to be utilized in global organizations. It is envisioned that through this unique building of managerial talents, organizations can develop/maintain a distinct competitive advantage in the markets they enter. This article explores inpatriation as an innovative means to develop managers as strategic resources to be used in formulating and implementing a global strategic plan.     

An empirical examination of strategic sourcing dominant logic: Strategic sourcing centricity

Recently, much of the thought in strategic sourcing, i.e., dominant logic, has shifted away from the exchange of tangible goods and toward the exchange of intangibles, specialized skills and knowledge, and processes. This study refers to strategic sourcing dominant logic as strategic sourcing centricity (SSC) and describes it as a sourcing management′s mindset based on learning, performance, planning, and relational orientations and manifests itself in the implementation of SS to meet supply management objectives and satisfy stakeholder requirements. Building on insights on intangibility derived from resource-based theory (RBV), the study proposes and empirically tests strategic sourcing centricity (SSC). The authors test the operational measures of SSC dimensions and its impact on performance on a sample of 174 supply management executives. The results indicate strong support for the theorized framework. Managerial implications and future research agenda are provided.     

A model of multinational enterprise subsidiary staffing composition

A large proportion of the multinational enterprise (MNE) literature focuses on parent country national (PCN) expatriates. The high costs of managing and supporting PCNs on foreign assignments, however, have made these assignments less attractive for MNEs and, as a result, MNEs are more actively exploring ways to effectively utilize third country nationals (TCNs) and host country nationals (HCNs), as well as PCNs to satisfy international subsidiary staffing needs. Grounded in the person–environment (P–E) fit theory, we delineate three environmental dimensions (strategic, national and organizational) to offer some propositions that may serve to guide this exploration. These propositions are based on an integrative model that examines the MNE subsidiary staffing composition under different combinations of strategic, national and organizational dimensions. We conclude with suggestions for future research.     

Strategic global human resource management research in the twenty-first century: an endorsement of the mixed-method research methodology

Global competition is rapidly becoming the norm in which nearly all business organizations must compete in one fashion or another. The complexity and value of strategic global human resource management (SGHRM) will continue to compound in significance as globalization becomes the predominate form of business. Both practitioners and researchers maintain the grapple with understanding the global phenomena and the resulting impact on the entire human resource management system.

Previously, researchers' maintained research programmes utilizing Western-style theories and methods, which were predominantly quantitative, to explore phenomena that may now be inappropriate. These methods and theories frequently do not capture the ‘fabric’ of global phenomena that include complex interactions of culture, institutions, societal norms and government regulations, among a few concerns.

The mixed methods approach is proposed to add the ‘fabric’ required, illustrating the depth and flexibility needed to explore the SGHRM issues. Mixed methods are a combination of qualitative and quantitative approaches that maintain methodological rigour as well as measures for reliability and validity. This paper explores the current methods, the reasons for their lack of success in portraying the depth of the phenomena and why the mixed methods approach appears to be a superior method for research for the SGHRM field.     

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.     

MNC's competitive strategies,experiences, and staffing policies for foreign affiliates

This study investigates the relationship between the strategic role of a multinational corporation's (MNC) foreign affiliates and its international staffing policy. Specifically, this study examines how an MNC's decision on expatriation is affected by strategic roles assigned to foreign affiliates: global integration of activities versus local market seeking. An empirical study is conducted using a sample of 808 foreign affiliates of Japanese firms. The research findings suggest that strategic roles of foreign affiliates alone may not adequately explain the international staffing policies of Japanese MNCs. Rather, we found a significant moderating effect of international as well as host country experience on staffing practices for foreign affiliates. While the staffing policies of MNCs striving for improving global efficiency of their operation are moderated by both international and host country experience, those seeking a specific local market position are influenced only by host country experience.     

Designing and supporting transnational teams: The human resource agenda

As the challenges of managing across borders become increasingly complex, companies are exploring innovative ways to organize and manage people. Many are turning to the use of transnational teams composed of individuals from multiple nationalities working on tasks that span multiple countries. This article reports the findings from a study of human resource practices used in 34 transnational teams from 23 multinational firms. The article provides specific examples of how staffing, training, and rewards systems are adapted to support the strategic orientations of these teams.¹ © 1998 John Wiley & Sons, Inc.     

Book Reviews

The main purpose of this exploratory research was to study the strategic importance of Central and Eastern Europe (CEE) as an emerging source of professional talent for European and American multinational corporations (MNCs) operating in Western Europe. The findings, based on in-depth interviews with 34 human resource leaders and consultants from 16 firms in the European Union and Switzerland, suggest that the new member states currently hold little strategic importance in the context of recruiting knowledge workers to Western Europe, and that MNCs' global staffing strategies may be excluding a strong and untapped source of professional talent. The less obvious and perhaps most important findings about why most of these MNCs do not systematically recruit from CEE countries lead to perceptions about CEE cultures and the communist legacy that still linger today.     

Extending strategic international human resource management research and pedagogy to the non-profit multinational

This article calls for the inclusion of multinational non-profit organizations in the research and pedagogy of strategic international human resource management. Multinational non-profit enterprise is increasingly influential, both economically and philosophically, as economic and socio-cultural boundaries become more interdependent. Yet the multinational non-profit sector has been ignored by international human resource management scholars. When research and pedagogy overlook practice, a concern exists with regard to their relevance. By outlining the international development of multinational non-profit enterprise, the article contextualizes strategic international human resource management in multinational intermediate private aid and development agencies. Analysis of a particular example, World Vision Australia, illustrates the discussion.     

Towards a cross-cultural framework of strategic international human resource control: the case of Taiwanese high-tech subsidiaries in the USA

Due to the growing expansion of newly emerging multinational companies (MNCs) in the USA market, it seems pertinent to explore how to manage their Western industrialized subsidiaries in terms of human resource management. This study combines the institutionalism, resource dependence perspective, and control theory to provide an integrative framework in an attempt to investigate the cross-cultural determinants of strategic international human resource control over MNCs' subsidiaries. By a qualitative analysis of 10 Taiwanese top high-tech manufacturing companies operating in the USA, our findings are as follow: In order to perform subsidiary's value-added activities, multinationals need to identify the value and capabilities need for these activities. At the same time, subsidiaries also need to compare the cultural advantage of the home country in terms of these activities. In addition, from the perspective of cross-cultural influence, input control is designed to respond to high integration and high adaptation; output control is executed in the case of low integration and high cultural adaptation; while behavioural control is used to respond to high integration and low adaptation, simultaneously in the case of low value of subsidiary's activities.     

Talent management and dynamic view of talent in small and medium enterprises

Talent Management (TM) has become one of the key strategic issues for leaders in global organizations and the majority of research on TM focuses on the large multinational enterprise (MNE) context. Despite the importance of small and medium-sized enterprises (SMEs), research in the area of talent management in this context is scarce, particularly conceptual research. This paper tries to address this gap by a) providing a theoretical rationale for the difference between large and SME firms in their talent management and human resource practices; b) exploring the applicability of the notion of talent management conceptualised in large firms to the SME context. c) Proposing a framework that helps identify the characteristics of talent in SMEs. We are critical of the best practices approach and we argue that the notion of talent management is likely to be different in SMEs compared with large firms mainly due to distinct institutional and structural factors.     

Employee commitment in MNCs: Impacts of organizational culture,HRM and top management orientations

This article tests a model of organizational commitment in multinational corporations (MNCs). According to the model, organizational culture and human resource management (HRM) affect employee commitment directly as well as indirectly through top management team orientations. Szpecifically, we examined the effect of top management team global orientation and geocentric orientation, which are seen as contributing uniquely to employee commitment in MNCs. The model was tested on a sample of 1664 core employees working in 39 affiliates of 10 MNCs. We found strong overall support for the model. In particular, organizational culture characterized by high adaptability and a HRM system characterized by high performance work practices were found to have a significant and direct effect on employee commitment. In addition, we found that the effect of these traditional elements of the human organization is partially mediated through top management orientations, specific to international firms. The validity and generalizability of these results are reinforced by the control of a set of demographic variables as well as nationality of parent company.     

Four ‘domains’ of career success: how managers in Nigeria evaluate career outcomes

Using an exploratory qualitative approach based on in-depth interviews with 38 junior and middle managers, and informed by institutional theory, this article explores how Nigerian managers conceptualise career success. Results indicate that in contrast to some Western-based research, managers prioritise ‘objective’ (e.g. achieving financial stability) over ‘subjective’ (e.g. achieving work–life balance) career outcomes. Results also indicate that the well-applied dichotomy between objective and subjective measures is insufficient to capture the complexities and nuances observed in the Nigeria context. We thus propose four ‘domains’ of career success to include personal and relational dimensions in addition to the subjective/objective criteria. This we argue is a more comprehensive, integrative and contextually sensitive ‘frame’ for the analysis of career outcomes. Our findings suggest that scholars and multinational companies interested in expanding their operations to emerging economies need to incorporate these factors into their conceptualisations and management practices.     

Staffing marketing positions during global hyper-competitiveness: a market-based perspective

As organizations globalize their operations, there appears to be an imperceptible shift in focus from internal tangible resources to those of external intangible relational resources; in other words, economies of scale appear to being replaced by economies of global scope. The strategic implications of this swing in the importance of resource bases can also have a significant impact on the international human resource management area. Identifying managers with local market knowledge and contacts becomes a critical consideration in the selection process. Maintaining on-going personal relations in foreign markets also helps to cement inter-organizational relationships such as strategic alliances. In the ‘think global, act local’ relational networks of global business, inpatriate managers appear to have the necessary characteristics of both organizational trust and local tacit knowledge to be effective global managers.     

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.     

Dynamizing human resources: An integrative review of SHRM and dynamic capabilities research

Human resource management (HRM) systems have been extensively analyzed in academic research yet limited attention has been paid to the role of HRM dynamic capabilities (DC) and their impact on resources and practices, employee well-being and firm performance. Our study bridges this gap by defining a new categorization of HRM DC based on their ultimate aims: building knowledge, advancing social integration and developing reconfiguration-enhancing mechanisms. In parallel, we offer an integrative framework to shed light on how strategic human resource management (SHRM) can accelerate HRM DC development. Through this conceptual process model and typology of capabilities, we deepen the discussion around the core components of HRM systems, HRM DC, and their effects on resources and practices, employee well-being and performance. In practical terms, HRM DC represent a promising driver of sustainable long-term organizational growth by enabling firms to boost their strategic agility and capacity to navigate in the presence of environmental dynamism.