The role of HRM practices in product development: Contextual ambidexterity in a US MNC’s subsidiary in India

Abstract

Recent studies have started exploring the linkages between organisational ambidexterity (OA) and HRM practices. OA is noted as a critical resource in achieving product, process, and business model innovations. By adopting an inductive case study of a US MNC subsidiary in India, we found empowerment-focused HRM practices were being used for exploration of new ideas and efficiency-focused HRM practices were adopted for the exploitation of the organisation’s existing strengths. Empowerment-focused HRM practices created a culture of openness and risk-taking, which facilitated the creation of an ambidextrous context. Further, ambidextrous learning was moderated by the adoption of a managerial/leadership style that focused on ‘mirroring competencies’ between the parent operation and its subsidiary. HRM practices were aimed at developing behaviours that valued the team-based co-development of graphic processor designs by means of a ‘parallel processing’ approach to product development. Additionally, the HRM practice of offering intrinsic employee rewards and both informal and formal training facilitated OA in delivering product innovation. This study represents a pioneering exploration of multiple levels of analysis (individual, functional, and organisational) for product innovation through the lenses of ambidexterity, innovation, and HRM practices. The implications for both theory and practice are also discussed.     

HRM practices for human and social capital development: effects on innovation capabilities

This paper analyzes the effect of systems of human resource management (HRM) practices on a company's innovation capabilities. To date, few studies have analyzed the way a firm may be more innovative by using specific sets of high-performance HRM practices from an intellectual capital-based view of the firm. From an extensive literature review, a model was established and tested through structural equation modelling, using the statistical technique of partial least squares. The study was applied to a sample of technological firms in Spain and the results show that high-profile personal HRM practices positively influence human capital while collaborative HRM practices influence social capital, which, in turn, affect innovation capabilities by means of, respectively, total and partial mediating effects. Managerial and HRM implications of these results are drawn by the authors, highlighting the idea of paying increased attention to managing firms with a focus on strategic intangible assets in order to gain competitive advantages based on innovation.     

Marketization and social protection reform: emerging HRM issues in China

This paper explores the human resource issues raised by China's current reform of its social protection regime. We examine a number of propositions at the core of the debate surrounding the relationship between globalization and social protection. It is concluded that globalization is compelling the government of China to construct a social protection system that is compatible with a market regime; many employers are evading their responsibilities and the state has been compelled to adopt countervailing regulations that can restrain this behaviour; China's decision to integrate into the world economy need not have a negative impact on the overall level of social protection available in other nations; and common social protection rules are affecting firms in highly divergent ways that reflect their ownership and industrial character and their specific labour market needs.     

In the eyes of the beholder: the HRM capabilities of the HR function as perceived by managers and professionals

This study investigated factors influencing line managers' and professionals' perceptions of the HRM capabilities of the HR function. Using a sample of 913 managers and professionals in subsidiaries of 11 Nordic multinational corporations, we tested the extent to which features of the unit's HRM system, attitudes of the unit's general manager and characteristics of the HR manager helped explain the perceived HRM capabilities. The analysis revealed that perceived HRM practice visibility and HRM inducements (the link between individual performance and HRM‐related benefits) were strong predictors of individual perceptions of the HR function's HRM capabilities. The use of e‐HRM and the most senior manager's attitudes towards the unit's HRM practices were also significantly related to perceived HRM capabilities.     

HRM structures and subsidiary discretion in foreign multinationals in the UK

This article uses a large-scale representative survey to examine a key aspect of control in multinational companies (MNCs): the extent of central influence over human resource (HR) policy formation in subsidiaries. This is a crucial aspect of behaviour, relevant for example for the cross-border diffusion of policies and practices and for the institutional distinctiveness of practice within a given host environment. The article assesses how far policy is determined by corporate headquarters or some other higher-level organizational structure. Its novelty lies primarily in its exploration of the influence of the structure of the HR management (HRM) function on subsidiary discretion. It finds, first, that the degree of central control is influenced for different HR issues by nationality of ownership and by international product/service standardization. Second, there is some variability in the antecedents associated with discretion on different HR issues. Finally, aspects of the structure of the HRM function significantly affect discretion, notably the networking of HR managers across borders and the direct reporting relationships within the function between the UK and higher organizational levels.     

Standardize or Customize: The Interactive Effects of HRM and Environment Uncertainty on MNC Subsidiary Performance

This study examines the impact of customizing (as opposed to standardizing) human resource management (HRM) practices on subsidiary performance in multinational corporations (MNCs). We examine how this relationship is influenced by environmental uncertainty. Hypotheses were tested using data from 92 subsidiaries of a large MNC operating in 27 countries. The results showed an interactive relationship between the customization of HRM practices and subsidiary environmental uncertainty on both financial (net profit) and nonfinancial (customer satisfaction) objective measures of subsidiary performance. The results of this study provide important empirical insights for researchers and practitioners into how HRM can be best configured to drive multiple performance outcomes for MNC subsidiaries. © 2014 Wiley Periodicals, Inc.     

人力资源管理对员工工作绩效的影响——基于HRM归因调节模型

本文基于归因理论,研究了前人尚未讨论的HRM归因对人力资源管理与员工工作绩效之间关系的影响。本文通过实证研究方法,检验了人力资源管理对员工工作绩效的影响发生条件,研究结果表明：（1）HRM归因调节HRM与员工工作绩效之间的关系,相对于利己HRM归因,利他HRM归因对员工工作绩效的正向影响作用更强;（2）HRM归因影响员工个人价值观对HRM与员工工作绩效之间关系的调节作用。     

The impact of narcoterrorism on HRM systems

This paper presents a study on the emergence of human resource management (HRM) systems in a narcoterrorism context based on a mixed-method approach. We conducted 40 interviews at 24 firms in Mexico to explore emerging HRM systems in narcoterrorism environments. The interviews were complemented with a quantitative content analysis of 204 news stories to explore the direct and indirect impacts of narcoterrorism on firms. Our analysis of firms’ responses with respect to HRM systems, which is supported by our quantitative analysis on the impacts of narcoterrorism, indicates that trust appears to shape HRM systems. We identified an adaptation strategy to design HRM systems based on a combination of strict employee’s screening and control an emphasis on humanistic practices such as soft-skills training and development, and a flexible work schedule, which appears to facilitate the development of trust in narcoterrorism environments. Identifying the similarities of objects and issues in the narcoterrorism context can help develop an understanding of this local phenomenon, with implications for the HRM and terrorism literatures on a global scale. Our findings highlight the importance of reinforcing values such as trust, openness, involvement and participation to develop a strong HRM system to adapt to narcoterrorism environments.     

HRM in the SME sector: valuable employees and coercive networks

Although the productivity and survival of small and medium-sized enterprises (SMEs) may be enhanced if they adopt human resource management (HRM) practices, there is a far greater degree of informality in employment practices in SMEs than in larger workplaces. The aim of this paper is to assess the extent to which a range of factors both internal and external to the workplace predict the extent to which HRM practices have been adopted in SMEs. Using data from the 1998 Workplace Employee Relations Survey, the analysis reveals that differences in workforce skill-mix, unionization and the customer base are important influences, with the first of these influences being particularly strong. As such, we suggest SMEs may lack the capability to develop HRM practices, but they are more likely to adopt such practices if they employ highly skilled employees and are networked to other organizations     

Societal institutions and HRM practices: an analysis of four European multinational subsidiaries in Bangladesh

Using the ‘societal-effect’ approach, a variant of the institutional theory developed and tested in Europe, this study investigates the impact of societal institutions on human resource management (HRM) practices of European multinational subsidiaries in Bangladesh, which is now on the list of the Next-11 economies of the world. In-depth case studies of four European multinational subsidiaries revealed the presence of different degrees of influence – partly attributable to societal effect – on the human resource practices of these subsidiaries. Our study added a new dimension to the interface between the strong and weak institutions and how such interfacing accords both legitimacy and reverse legitimacy to MNC subsidiaries and their societal institutions respectively. Another interesting finding of the study is the emergence of political system as a societal institution and, hence, a determinant of HRM practices in these subsidiaries. The study's implications are given.     

跨国公司在华企业中隐性知识的管理——基于扎根理论的研究

近年来,隐性知识管理方面的理论研究已经取得了重要进展,但是实证方面的研究还不多见。本文以跨国公司在华企业为研究对象,采用扎根理论研究方法进行定性研究,旨在明确跨国公司在华企业中隐性知识管理的实际情况,并从这些现象中提炼出隐性知识的构成因素及其影响机理。研究结果表明：企业内部的个人隐性知识、团体隐性知识以及组织层面的隐性知识相互影响,企业外部隐性知识通过影响组织隐性知识对个人隐性知识和团体隐性知识产生间接影响。     

Overcoming the liability of smallness by recruiting through networks in China: a guanxi-based social capital perspective

We investigate the role of guanxi in Chinese entrepreneurial firms’ recruitment practices in attempting to overcome the liability of smallness. Combining insights from the social capital and guanxi literature, we theorize the guanxi-based social capital perspective and use it to analysis 96 in-depth interviews with multiple members (entrepreneurs, senior managers and factory workers) from 15 die-casting entrepreneurial firms in Guangdong province, China. We find that the use of guanxi in recruitment practice can overcome the liability of smallness because it makes the hiring process more convenient, improves firms’ attractiveness to jobseekers and enhances the person-organizational fit between new hires and firms. We discuss how Chinese entrepreneurs and their senior managers use guanxi strategically to achieve these advantages. On the other hand, our findings suggest that jobseekers can also use guanxi to increase their options, improve their bargaining power and distract firms’ attention away from hiring the most appropriate candidate for the job in order to undermine the effectiveness of Chinese entrepreneurial firms’ recruitment procedures. We explore the implications of these findings for academic research and managerial practice.     

The influence of strategic HRM and sector on perceived performance in health services organizations

In this study, we examine a variety of management characteristics of for-profit and not-for-profit organizations in the health services (HS) industry. Data collected from Australian senior executives are used to test the relationships between managerial constructs such as employee commitment, customer demandingness, strategic HRM orientation and the adoption of human capital-enhancing human resource (HR) practices and perceived overall performance. Data analysis conducted using the Partial Least Square Modeling show a statistically significant path from commitment to employees, customer demandingness and strategic HRM orientation to the adoption of human capital-enhancing HR practices (such as selective staffing, comprehensive training, and performance appraisal) to perceived organizational performance. The results also show that private sector health service organizations have a higher level of perceived performance.     

The Drivers of Multinational Enterprise Subsidiary Entrepreneurship in China: A New Resource‐Based View Perspective

This paper extends the resource‐based view (RBV) of the firm, as applied to multinational enterprises (MNEs), by distinguishing between two critical resource dimensions, namely relative resource superiority (capabilities) and slack. Both dimensions, in concert with specific environmental conditions, are required to increase entrepreneurial activities. We propose distinct configurations (three‐way moderation effects) of capabilities, slack, and environmental factors (i.e. dynamism and hostility) to explain entrepreneurship. Using survey data from 66 Canadian subsidiaries operating in China, we find that higher subsidiary entrepreneurship requires both HR slack and strong downstream capabilities in subsidiaries, subject to the industry environment being dynamic and benign. However, high HR slack alone, in a dynamic and benign environment, but without the presence of strong capabilities, actually triggers the fewest initiatives, with HR slack redirected from entrepreneurial experimentation towards complacency and inefficiency. This paper has major implications for MNEs seeking to increase subsidiary entrepreneurship in fast growing emerging markets.     

新生代员工的人力资源管理策略

新生代员工是特殊时代背景下成长起来的一代人,当他们成为职场主力军时,管理的变革也相应来临。新生代员工有着独特的人力资源特点,针对这一群体的管理内容和方式应有所侧重,才能发挥员工的积极性、主动性、创造性。     

The role of Vartan Bhanji in implementing HRM practices in Pakistan

The local adaptation of Western HR concepts in more traditional societies is an important topic for international HRM research and practice. We analyze the role of Vartan Bhanji, a traditional notion constituting and governing local social networks, when implementing such concepts in the Pakistani context. Based on a detailed case study of a privatized hospital, our analysis shows that Vartan Bhanji is both supporting and limiting Western HRM practices, in particular recruitment and selection, appraisal, compensation and promotion. The study reduces the knowledge gap for Pakistan, a country underrepresented in the international HRM discourse; illustrates the role of traditional social networks in companies using Western HRM concepts and supports calls for contextualizing HRM practices and research.     

社会工作介入企业人力资源管理的可行性与难点分析——以山东某机械公司为例

在当前企业人力资源管理各项职能中还存在着几方面值得关注的问题,需要企业引入一种新的力量专门解决。这种新的力量可以是社会工作理念、社会工作方法和社会工作者。企业社会工作能够增强员工的社会功能,充分挖掘员工自身潜能和调动外部资源促进生产环境改善。但社会工作介入企业人力资源管理仍有困难,社会工作者要想在企业中实现其价值,首先还要服从企业的战略,灵活地运用社会工作的方法和技巧帮助企业解决问题,做到"有为有位"。     

How internal and external factors influence the dynamics of SME technology collaboration networks over time

This paper presents a framework to assess the effects of technology collaboration networks (TCNs) on the innovation performance of small and medium-sized enterprises (SME). It includes three factors that affect firm dynamics and could influence the success of the TCN: the macroeconomic cycle (macro-level), the industry life cycle (industry-level) and the age of the firm (firm-level). Previous papers have focused on factors at one specific level, mainly the firm level, but have not looked at these all together and have also failed to take into account how they evolve gradually over time. This study closes this gap using a panel of 44,885 observations for SMEs for the period 2003–2013. The findings confirm the importance of the inclusion of these factors at the macroeconomic, industry and firm level since they influence the TCN and the innovation performance relationship. The implications for managers and policy makers are discussed.     

HR and IT capabilities and complementarities in knowledge-intensive services

The main premise of this article is that human resources (HR) and information technologies (IT) are central rather than support functions in knowledge-intensive services. By building management capabilities in both HR and IT, knowledge-intensive services can transform their business processes that, in turn, enable them to provide exemplary services to the customers. Our arguments are grounded in the three related theoretical frameworks of the resource-based view, organizational capabilities, and the theory of complementarities. We suggest that the research and practice in HR and IT fields may have to focus on HR and IT capabilities rather than HR practices or IT investments as the sources of sustainable competitive advantage since capabilities better fit the definition of a ‘resource’ than HR practices or IT investments. Further, organizational capabilities in both HR and IT may enable knowledge-intensive services to transcend the inherent tradeoff between cost and responsiveness. We also discuss the role of HR and IT in knowledge management.     

农民工的社会网络变迁

采用系统模式研究了进城农民工的社会网络重构过程,指出随着谋生方式由农业生产向非农产业的转移,进城农民工正在逐步建立起以业缘关系为基础的新的社会纽带,并使之成为其社会网络的重要组成部分.这些由进城农民工一手构建的社会关系网络正在成为他们在城市生活中赖以生存和发展的重要资本.