Towards an integrative framework of strategic international human resource control: the case of Taiwanese subsidiaries in the People's Republic of China

This study integrates the resource-based view of the firm, the resource dependence model, institutionalism theory and the cybernetic system model into a framework to investigate the determinants of international human resource (IHR) control at the subsidiary level. The effects of competitive strategies and the mediating effects of inter-organizational interdependencies on three different dimensions of IHR control (input, behaviour and output) were studied by using a sample of 101 Taiwanese subsidiaries operating in the People's Republic of China (PRC). Four notable associations were found: (1) a robust direct relationship between the adoption of a low-cost strategy and two dimensions of IHR control (behaviour and output) was testified; (2) an indirect effect of a low-cost strategy on IHR input control through dependence on the parent's resources was found; (3) the direct relationship between local differentiation strategy and IHR input control could not be testified because a positive mediating effect of dependence on local resources counteracted the negative mediating effect of dependence on parents resources; (4) the direct effects of dependence on local resources on the IHR input control and dependence on parent's resources on IHR input control and behavioural control were testified.     

The international business traveller: a neglected but strategic human resource

There has been considerable research over the past two decades into the various aspects of traditional expatriate assignments. However, this research has overlooked an important category of international operator: the international business traveller, also known popularly as globetrotter or frequent flier. In this paper, we report on the results of a study of ten Australian and Danish international business travellers (IBTs). The aim was to explore the roles and activities of IBTs and the factors, such as level of organizational support that may intervene in the performance of their roles. We conclude that IBTs often are a neglected resource, particularly in terms of skills and knowledge transfer.     

Knowledge flows and performance of multinational subsidiaries: the perspective of human capital

This paper examines the relationships between knowledge flows and subsidiaries' performance in the perspective of human capital. Our empirical study of 130 Taiwanese multinational companies' (MNCs') subsidiaries show that outflow of knowledge can enhance performance; however, the inflow of knowledge can facilitate performance only in the case of high investment of human capital in subsidiaries. Additionally, the effects of knowledge inflow on subsidiary's performance are found significant only in its earlier stage of establishment.     

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.     

A problematic transition to a strategic role: human resource management in industrial enterprises in China

The Chinese government has launched extensive reforms to encourage integration with the global economy. Our research investigates the implications for human resource management practices of the changing business environment in China, ownership of organizations, organizational strategies and strategic integration of the HR function. We conducted two surveys in major Chinese cities in 1994/5 and 2001/2, with managers of state-owned, privately owned, collectively owned and foreign-invested enterprises.

Regression analyses showed that organizational strategy and organizational ownership, in contrast with earlier research, were not found to be strong predictors of HRM practices. The changing business environment in China and participation by the HR function in strategic decision-making were the strongest predictors of HRM practices. Overall, a strategic role for the HR function and implementation of ‘Western’ HRM practices are becoming more prevalent in China, although the legacy of traditional practices endures and new challenges are emerging.     

Framing the field of international human resource management research

This article presents an overarching framework of the international human resource management field. The framework has four different levels: Macro (encompassing countries, regions and industries), the Multinational Corporation, Unit (typically subsidiary) and Individual (including teams, employees and their family members). At each level, we make a distinction between Influencing Factors, the HRM Function (encompassing both the HR department and HR policies and practices), Proximal Outcomes and Distant Outcomes of HRM. The framework allows us to examine existing research and suggest avenues for future work.     

Social capital and human resource management in international joint ventures in Vietnam: a perspective from a transitional economy

This study highlights the importance of social capital in international joint ventures (IJVs), and examines human resource practices as a factor shaping such social capital. Comprehensive measures of social capital are developed and tested, which extend prior work on ‘bonding’ and ‘bridging’ social capital. We also link social capital with its anticipated antecedents and consequences. The study's findings are based on data collected from 164 IJVs located in Vietnam. IJV performance was predicted by training and by the level of trust and cooperation between foreign and local personnel. Training (including acquisition of management skills, technology, and cross-cultural understanding) also was predictive of the measures of social capital. A key practical implication arising from this study is that the return on investment from training of joint venture personnel can stem not only from the transfer of technical and management skills needed for developing competitive advantage, but also from the positive impact on social capital, which further contributes to venture success. The establishment of written objectives and plans for the venture, as well as the IJV's level of control regarding its own HR functions also was found to be related to some components of social capital. The findings of this study reinforce the call to build on the contributions of local personnel in joint ventures, and in Vietnam in particular.     

Chinese multinationals’ approach to international human resource management: a longitudinal study

Abstract

This study explores how emerging market service firms, operating in developed markets, approach human resource management (HRM). Data analyzed in this article were drawn from a longitudinal case study of the Australian subsidiary of a Chinese multinational bank. We find that subsidiary HRM follows host country and global best practices. However, the way that this hybrid HRM system was implemented shows traces of Chinese origin. A key finding from this study is that although our case bank officially adopted a polycentric approach to subsidiary staffing, employing host country nationals, the subsidiary predominantly employed locals with a Chinese ethnic background. We also find the case bank’s strategy in international HRM has evolved from a focus on localization to global standardization. This global standardization, however, is shaped in line with global best practices rather than home country management model. These findings highlight the need for future studies to adopt a more nuanced approach to examining international HRM strategies, especially when analyzing host country effect or localization strategy.     

Managing diversity through human resource management: an international perspective and conceptual framework

This paper critically reviews the literature on managing diversity through human resource management (HRM). We discuss the major issues and objectives of managing diversity and examine the state of human resource diversity management practices in organizations. Our review shows that inequality and discrimination still widely exist and HRM has focused mainly on compliance with equal employment opportunity (EEO) and affirmative action (AA) legislation. Less attention has been paid to valuing, developing and making use of diversity. Our review reveals limited literature examining how diversity is managed in organizations through effective human resource management. We develop a framework that presents strategies for HR diversity management at the strategic, tactical and operational levels. Our review also discusses the implications for practice and further research.     

Theoretical implications from the case of performance-based human resource management practices in Japan: management fashion,institutionalization and strategic human resource management perspectives

In Japan, a new type of human resource management (HRM) practices called ‘performance-based HRM practices’ (seika-shugi in Japanese) emerged in the 1990s, and has been adopted by many Japanese firms. In this paper, I illustrate how these type of practices emerged as a management fashion, diffused across a large number of Japanese firms, and became institutionalized in the Japanese business context; and discuss the relationship between performance-based HRM practices and firm performance. This illustration is used to develop a theoretical framework to better understand the relationship between HRM practices and firm performance by integrating theories of management fashions, institutionalization and strategic HRM. Suggestions for future research are also discussed.     

Introduction: globalizing international human resource management

In this Introduction, we have sought to explain the rationales in putting together a ‘Special Issue’ on Globalizing International Human Resource Management (IHRM). These include, first, coverage of as wide a range of regional and national cultures as possible; second, presentation of as wide a set as perspectives as possible; and last, discussion of how these may shape both theory and practice in the field.     

The adoption,character and impact of strategic human resource management: a case study of two large metropolitan Vietnamese public hospitals

In this paper the researchers set out to explore the adoption, character and impact of strategic human resource management (SHRM) in two large metropolitan Vietnamese public hospitals using a multi-level qualitative research design. Data are analyzed from 21 interviews and 5 focus groups with key players from the hospitals and government authorities. Findings show that the State controls many of the core day-to-day HR functions of public hospitals, curtailing local autonomy and management innovation. This is compacted by inadequate government funding, poor training of medical staff, and inadequate management and business skills of hospital managers. Inhibiting greater experimentation with SHRM is the fear of developing management initiatives out of sync with the State. Consequently, many managers and clinicians held negative views of the HR department and their relevance for the day-to-day management of healthcare services. Respondents reported that they perceived these factors had a negative impact on the well-being of medical staff and the quality of patient care. The paper concludes with a discussion on the necessity for continued State reforms that can enable greater autonomy of the hospitals' HRM functions and greater investment in local HR capabilities to materialize the link between SHRM, employee well-being and quality of patient care.     

Human resource management and cultural diversity: a case study in Mozambique

A limited number of studies in Africa have reconciled human resource management (HRM) programs with cultural diversity as represented by Hofstede's cultural dimensions. The objective of this study is to examine how Western-based HRM can be modified to embrace cultural diversity in an African context. A mixed methodology employed a survey, as well as a case study in Mozambique. The results indicate high levels of power distance, collectivism, uncertainty avoidance, and feminism that are very similar to Kenya. These dimensions differed across a spectrum of employee levels illustrating cultural hybridization at firm level in a multinational operating in Africa. The results also illustrate the importance of a range of health, family, and societal beliefs in the workplace. Finally, a series of HRM recommendations were developed in an African context with respect to the selection, training, performance measurement, and management programs of the company.     

Human resource management control system and firm performance: a contingency model of corporate control

This study explores how corporate controls used by the parent company of a conglomerate affect subsidiaries' human resource management (HRM) control–performance relationship. Empirical results from 93 firms reveal that the appropriate use of HRM control systems was a contributing factor to firm performance. When a subsidiary's approach to HRM was based on behavior control, performance was lower when the parent company emphasized financial control. When a subsidiary's approach to HRM was based on output control, performance was higher when the parent company emphasized either strategic or financial control. When a subsidiary's approach to HRM was based on input control, performance was higher when the parent company emphasized strategic control.     

Expanding the concept of fit in strategic human resource management: An examination of the relationship between human resource practices and charismatic leadership on organizational outcomes

We investigate the relationship between high‐commitment human resources (HCHR) practices and chief executive officer (CEO) charismatic leadership on voluntary employee turnover and relative performance to peers in a sample of 281 small firms. In this study, we expand upon prior conceptualizations of fit within the literature on strategic human resources (HR) to include the fit of HCHR with other aspects of the people management system. Specifically, we hypothesize a variety of relationships that may occur (e.g., positive synergistic, deadly combination, or substitution) and find that when a firm uses a system of HCHR practices and has a charismatic leader, performance is highest and turnover lowest. Conversely, when a firm does not invest in either, performance is lowest and turnover highest. We also found some support for a substitution effect as our data showed that when there is a mismatch between a firm's HR system and the leadership characteristics of the CEO, turnover is higher and performance lower than the high‐investment people management system (high HCHR and high‐charismatic leadership), but turnover is lower and performance higher than the low‐investment (low HCHR and low‐charismatic leadership) people management system.     

The role of cultural values on a firm's strategic human resource management development: a comparative case study of Spanish firms in China

This paper attempts to better understand the role of cultural values as a human resource contributor to a firm's strategic development. Comparative case studies of two Spanish subsidiaries in China were made using on-site, in-depth qualitative research in both Spain and China. We then examine how this difference in management affects the firm's overall strategic development and, hence, its performance. The results of the study suggest that cultural values, as a human resource contributor, do indeed affect a firm's overall strategic development and, hence, the firm's resulting success or failure. Throughout the paper, the management by values (MBV) framework is used as a lens to further examine and better understand this process.     

The challenge of international human resource management: balancing the duality of strategy and practice

Over the last two decades there has been an unprecedented increase in the number of organizations that have internationalized their operations. The international movement of labour that has been concomitant with such expansion of international business has meant that issues associated with the management of human resources across international borders are increasingly important to international human resource managers and academics. The research presented in this paper examines international human resource management (IHRM) pedagogy and practice in Australia. It reports IHRM academicians' and practitioners' understanding of the major issues for teaching and practice in IHRM and elucidates current developments and directions for this field.     

The contextualization of human resource and quality management: a sensemaking perspective on everybody's involvement

The principal idea of this paper is that human resource management (HRM) and quality management (QM) ideas require contextualization when used to change organizations. Here, contextualization stands for the process that leads to a shared meaning, i.e. the majority of the co-workers in an organization understand and define a concept or change in terms that are shared and accepted. In the present paper, we study a strategic change project, based on HRM and QM ideas, conducted at the County Council of Värmland (CCV), the public healthcare authority in the County of Värmland in Sweden, where the focus was on everybody's involvement. Our interpretation of the project shows that a shared meaning of the concept of everybody's involvement was not reached in this particular case, i.e. contextualization did not occur. One important result of the study is that contextualization is a prerequisite for realizing HRM and QM thoughts. The paper also stresses how important it is that general and ‘non-contextualized’ HRM and QM ideas are adapted to local practices when used to direct organizational change.     

Building flexibility into multi-national human resource strategy: a study of four South African multi-national enterprises

The study describes four approaches for configuring corporate HR strategy by firms from an emerging market when dealing with the integration-differentiation dilemma. Most research on strategic international HRM is on the perspective of the affiliate or discusses the degree of isomorphism between the HRM practices of the parent and affiliate. The authors apply a cross-case analysis of the cases of Nando's International, MTN International, Sasol and SABMiller, focus on the implementation of corporate HR strategies from the parent's perspective and show that MNEs differ in the scope and level of abstraction of their corporate HR strategies. It is further suggested that this is primarily due to differences in business model, the need to accommodate national culture, the type and role of organizational culture in the MNE, which impact on the level of convergence of HR management practices. In all of the cases, there is a large degree of variance in these factors.     

Organization HRD and technology: towards a bureaucratic theory of strategic control

In this study, an investigation is conducted of the relationships between technology and training as attributes of strategic control. It is argued that, when the means of production become more technology oriented, smaller firms will be more ready to train and develop existing workers. Larger firms, by contrast, may tend to emphasize training but more of a generic type rather than ‘tailor made’.