Re‐visiting ‘country of origin’ effects on HRM in multinational corporations

This article builds on the existing literature on ‘country of origin’ effects on the management of human resources in multinational corporations (MNCs). It adopts a relational perspective in order to examine how actors at different levels within multinationals develop identities, and how these interact. Exploring the different sets of relations present within MNCs highlights two major areas in which the existing literature is deficient: first, a more integrated perspective on country effects within MNCs is dependent on an understanding of the potential for firms to strategically segment HR policies; second, more consideration needs to be given to the potential separation, either full or partial, of country of ownership and country of management effects, in order to reach a more realistic analysis of how national business systems shape international HRM.     

Between Boston and Berlin: American MNCs and the shifting contours of industrial relations in Ireland

Drawing on detailed qualitative case studies and utilizing a national business system lens, we explore a largely underrepresented debate in the literature, namely the nature of change in a specific but critical element of business systems, that is the industrial relations (IR) institutions of the State and the impact of MNCs thereon. Given the critical mass of US investment in Ireland, we examine how US MNCs manage IR in their Irish subsidiaries, how the policies and practices they pursue have impacted on the Irish IR system, and more broadly their role in shaping the host institutional environment. Overall, we conclude that there is some evidence of change in the IR system, change that we trace indirectly to the US MNC sector. Further, the US MNC sector displays evidence of elements of the management of IR that is clearly at odds with Irish traditions. Thus, in these firms we point to the emergence of a hybrid system of the management of IR and the establishment of new traditions more reflective of US business system.     

Worlds colliding: the translation of modern management practices within a UK based subsidiary of a Korean-owned MNC

This paper explores the factors that served to dislodge an espoused strategy of quality management with ‘soft’ HRM within a British subsidiary of a Korean owned multinational company. Accounts from British and Korean managers revealed competing sets of tensions at three levels: external organizational, intra-organizational, and internal workplace. The case is important for a number of reasons. First, research on UK based subsidiaries tends to have focused upon American and Japanese owned companies, with less evidence from MNCs from later industrialized economies. Second, evidence suggests that MNCs from Korea, Taiwan, and Singapore have been experimenting with Western influenced high-performance work systems – but there is less evidence about how these are actually translated into the workplace. Third, there is a growing literature that suggests that the transfer of management practices in MNCs can be partly understood as a ‘negotiated process’, and disagreements may emerge between organisational actors in respect of the meaning and function of such practices. This article offers further support for this contention and offers insights into how these processes affected day-to-day management of the workplace and undermined the espoused strategy.     

Diffusing ‘best practice’ in Chinese multinationals: the motivation,facilitation and limitations

With increasing global integration, the diffusion of ‘best practice’ is a critical activity in MNCs, particularly for those from developing countries which have recently joined global markets. Recent research has suggested that ‘reverse diffusion’ is an important approach to the internationalization of management. However, there is little empirical evidence in support of this argument. This paper draws on in-depth case studies of the UK subsidiaries of Chinese MNCs to explore the nature and characteristics of diffusion activities. It confirms that ‘reverse diffusion’ played a positive part in the internationalization process of these companies, although the impact on the home firms is limited. It also found that new forms of management transfer are emerging in these Chinese MNCs. This suggests that the diffusion of ‘best practice’ in MNCs can be varied with different national and organizational characteristics.     

Strategies of innovation in smaller firms

The exploratory study described below identifies and examines the ways in which smaller firms respond to the product gaps which arise when their existing product bases no longer provide the sales and profit potential required to fulfil their managers' aspirations for corporate growth. It was concerned to ascertain how product gaps are actually identified by managers, and to investigate the relationships between the different types of gaps and firms' innovation strategies. Fifty-four strategies of innovation were examined in eighteen firms across several industries. Two distinct types of product gap emerged from the analysis: ‘positive’ and ‘negative’. Each reflected a different pattern of managerial perception of the strategic need to innovate, and each tended to be followed by distinctly proactive or reactive strategies of innovation with predictable consequences for the product-market position of the firm.     

Performance and reward practices in foreign multinationals in the UK

This article examines variability in pay and performance management systems (PPMS) across foreign multinational companies (MNCs) in the UK, using a representative survey. It examines factors shaping PPMS for two groups, managers and the largest occupational group (LOG). It finds that US MNCs tend to have more PPMS practices in combination than do non‐US firms, but that for individual items nationality has relatively low influence, particularly for LOG. Other key factors in PPMS vary by employee group: for managers, international HR structural mechanisms for networking, organisational learning and the transmission of a global HR philosophy are important. For LOG, collective bargaining coverage is crucial. The article discusses the implications of the findings for ‘contingency’ approaches to HR ‘architecture’.     

Human resource and industrial relations practices of UK and US multinationals in Germany

Most of the research about HRM and IR practices of MNCs in their host country has been conducted in deregulated countries such as the UK and the US. Host countries with relatively weak institutional arrangements facilitate the transfer of home-country practices. In contrast, those with institutionally strong systems, such as Germany, impose stronger pressures for adaptation. This paper reports research about nine US and four UK subsidiaries operating in Germany. It examines how their HRM and IR practices are shaped by German labour and IR institutions, how they differ from a control group of indigenous firms and what room for manoeuvre is left for the introduction of home-country practices. The main conclusions are that small and medium-sized subsidiaries in particular can to some extent avoid the pressures exerted by German labour and IR institutions. This facilitates the transfer of home-country practices. However, even larger affiliates that comply with the German institutions can transfer practices from their parent company. The highly regulated German system leaves some room for flexibility. Nevertheless, the institutional environment prevents large companies from following a unitarist HRM and IR approach.     

The Management of Socio-Political Issues and Environments: Toward a Research Agenda for Corporate Socio-Political Engagement

Socio-political issues and environments are becoming more complex and challenging. In this introduction to the special issue on ‘The Management of Socio-Political Issues and Environments: Organizational and Strategic Perspectives’, we take stock of the burgeoning research on how firms interact with socio-political actors and environments over the last few decades, specifically research on Corporate Political Activity and Corporate Social Responsibility. We then argue that the socio-political environments and actors with which firms interact are in a state of flux, such that issues are more interrelated and dynamic, and actors are more diverse and demanding. As such, we propose a new concept of corporate socio-political engagement (CSPE), which represents a more holistic perspective to understanding complex interactions among firms and their social/political stakeholders, incorporating and transcending conventional notions and tactics documented in the extant nonmarket strategy literature. Using a two-dimensional framework that captures the identity of socio-political actor or the nature of socio-political issues (political, social, or both) as well as the relevant level of analysis at which the interactions unfold, we showcase the contributions of the special issue articles to this research agenda. Finally, we discuss and specify future research directions for revealing the multifaceted nature of CSPE.     

Green process innovation: Where we are and where we are going

Environmental pollution has worsened in the past few decades, and increasing pressure is being put on firms by different regulatory bodies, customer groups, NGOs and other media outlets to adopt green process innovations (GPcIs), which include clean technologies and end-of-pipe solutions. Although considerable studies have been published on GPcI, the literature is disjointed, and as such, a comprehensive understanding of the issues, challenges and gaps is lacking. A systematic literature review (SLR) involving 80 relevant studies was conducted to extract seven themes: strategic response, organisational learning, institutional pressures, structural issues, outcomes, barriers and methodological choices. The review thus highlights the various gaps in the GPcI literature and illuminates the pathways for future research by proposing a series of potential research questions. This study is of vital importance to business strategy as it provides a comprehensive framework to help firms understand the various contours of GPcI. Likewise, policymakers can use the findings of this study to fill in the loopholes in the existing regulations that firms are exploiting to circumvent taxes and other penalties by locating their operations to emerging economies with less stringent environmental regulations.     

Contributions of design emphasis,design resources and design excellence to market performance in technology-based service innovation

The value of design in product innovation is widely acknowledged and supported by empirical research, although extant research tends to focus solely on the role of designers, or design excellence, or design emphasis. Design in the context of service innovation is less well understood. Technology-based firms are viewed as key loci of innovation and, indeed, this innovation is not limited to product innovation, even though many of the stereotypes that come to mind have to do with the development of ever more technologically advanced ‘widgets’. In response to the gaps in current literature, this work takes a holistic approach to measuring design and examines how design resources (designers), design emphasis (emphasis on aesthetics and experience) and the outcomes of design (design excellence) jointly contribute to market performance in technology-based firms engaged in service innovation. Based on a survey conducted among managers of 176 technology-based service firms and evaluations of design excellence by design experts, the findings suggest that design emphasis and design resources both contribute to market performance. Surprisingly, design excellence is not found to contribute to market performance and possible reasons for this are discussed.     

High-investment HR values and firm performance among local firms and U.S. MNCs’ subsidiaries in South Asia: a comparative study

Grounded in institutional theory, this study investigates the differential adoption and internalization of high-investment human resource (HR) values by local companies and by subsidiaries of US firms located throughout South Asia; and the impact of these HR values on firms’ performance. In line with our predictions, results suggest that US subsidiaries have a greater rate of adoption of high-investment HR values compared to local South Asian firms. Contrary to our predictions, however, both types of firms are similar in the level of internalization of their respective HR values. Finally, while greater levels of high-investment HR value adoption is associated with firm performance across the board, this relationship tends to be stronger for US MNCs’ subsidiaries compared to local South Asian companies. Theoretical and practical implications for the transfer and diffusion of high-investment HR values in institutionally and culturally distant contexts are discussed.     

Public Funding for Science and the Value of Corporate R&D Projects; Evidence from Project Initiation and Termination Decisions in Cell Therapy

How do firms decide which R&D projects to pursue and which ones to cast aside? We use a real options approach to advance our understanding of how firms manage uncertainties in R&D project management, in particular uncertainties linked to the external scientific environment. Our findings highlight how these uncertainties have an impact on the initiation and discontinuation of R&D projects. We examine these effects in the context of shifts in US science policy in the cell therapy field, using a dataset on 570 R&D projects in the global cell therapy sector, initiated over the period 1986–2011. We find decreased R&D project initiation rates and higher discontinuation rates for projects initiated by US firms in the aftermath of policy shifts that increased uncertainties about public funding support for US cell therapy research. We also highlight how this effect was reversed as the US public funding outlook for such research recovered.     

Executive compensation in North American high-technology firms: a contextual approach

After reviewing the literature surrounding the link between executive compensation and innovation activities of North American firms, we examine two gaps in the area. First, we analyze how contextual factors can affect CEO pay in high-technology companies. In particular, we study three contextual dimensions: political, economic, and social. Second, we consider the specific case of executive compensation in high-technology firms when family ties are present at the helm. Drawing on agency rationale and previous research, we develop a series of instrumental propositions intended to provide the theoretical basis for a future research agenda in the area.     

Foreign firms in China: modelling HRM in a toy manufacturing corporation

This article reports the study of a large, wholly foreign‐owned toy factory in China. It explores whether foreign direct investment (FDI) manufacturing firms in China inevitably operate in a Taylorist fashion, in contrast to the much praised HR model of blue chip multinational corporations (MNCs) in the country, or whether there is a ‘third way’ in which good HR practices may be adopted on the ground. The article concludes that a more nuanced approach is needed in our study of FDI companies in order to gain a fuller understanding of the institutional and cultural factors at play and of the consequent diversity in the HR and employment practices of FDI firms, instead of being trapped in a simplistic and polarising typological framework of analysis. This study is necessary in light of the growing diversity in the patterns of FDI companies operating in China in terms of their ownership structure, product market, management style and HR strategy, both for managers and for workers.     

How did you get up and running? Taking a Bourdieuan perspective towards a framework for negotiating strategic fit

This article suggests a theoretical framework for illustrating significant iterative processes that need to be strategically managed when entering a new field or changing a social position within a field. Applying a process-relational perspective, the framework theoretically underpins what propels individuals to change their behaviour conceptualized as constructing a strategic fit between personal structure and fields. Using Bourdieu’s concepts of habitus, field and capitals as a lens the analysis reveals how capital transformations eventually can lead to a social construction of this temporary strategic fit. The article argues that the performance of habitus expresses temporary field specific social positioning as a social materialization of macrostructures (gender, age, class, etc.). This suggested framework is applied to conceptualizing how nascent entrepreneurs successfully negotiate entrepreneurial processes. It is concerned with a small aspect: how to physically start a business (its registration and the start of trading). In this context, the article unpacks how the transformation of capitals mediates nascent entrepreneurs’ social positioning. This article contributes to the growing ‘social turn’ research situating entrepreneurial processes within social relations and context and the emerging Entrepreneurship as Practice field. It offers practical implications for business support and research directions.     

Actions speak louder than words: how employees mind the implementation gap

Abstract

Integral to employees’ working lives are the HR policies and more importantly, the practices that follow those and their implementation, which employees experience directly. To date, research on HR implementation considers how HRM is ‘done to’ employees by management and therefore ignores the agency of individuals to shape how HRM is ‘done to them’. Taking the perspective of employees, in a qualitative study of female lawyers, this paper examines employees’ roles in shaping HR implementation, addressing a lack of understanding about the role of ‘others’ in the process. Drawing on the concept of social power, the article focuses on the implementation of agile working practices within UK-based law firms. It finds that despite lacking legitimate position power to influence processes, employees draw on a variety of other power sources (e.g. referent, information, coercive) and tactics (e.g. leveraging membership of professional networks) in order to influence their working environment with respect to HR policy and practice, particularly in response to perceived implementation gaps. The current study underlines that employees may be integral to bridging the gap between policy and practice and therefore to ensuring the link between HRM and organisational performance. It also proposes that behavioural responses to HR practices should be considered in future theorising of the HRM-performance relationship.     

Attainment Discrepancy and New Geographic Market Entry: The Moderating Roles of Vertical Pay Disparity and Horizontal Pay Dispersion

Studies in the behavioural strategy literature have examined the influence of attainment discrepancy on new geographic market entry with inconclusive results. We clarified the relationship between attainment discrepancy and new geographic market entry by considering the moderating effects of managerial pay gaps with concentration on vertical pay disparity and horizontal pay dispersion. The framework also contributes to our understanding of tournament theory and social comparison theory by identifying specified performance contexts under which types of pay gaps conform to or violate theoretical predictions. Empirical analyses based on a panel data of Standard and Poor’s (S&P) 500 firms from 1996 to 2006 showed that our hypotheses are largely supported.     

Purchasing practices in small- to medium-sized enterprises: An examination of strategic purchasing adoption,supplier evaluation and supplier capabilities

The benefits that can be derived from effective purchasing have long been recognised in the management literature. Despite a growing body of research on purchasing practices in small- to medium-sized enterprises (SMEs), a number of key issues remain under-examined. We investigate SME purchasing practices in terms of (1) the degree to which purchasing is regarded as a ‘strategic’ activity by SMEs, (2) the use of supplier evaluation systems by SMEs and (3) the supplier capabilities emphasised by SME buyers. Through a survey of UK SME managers, we find that purchasing practices varied greatly across SMEs. Purchasing formality is generally low with limited evidence of purchasing being employed strategically and with many firms not undertaking formal supplier evaluations. In terms of supplier capabilities, we find that SMEs differ in the capabilities they prioritise, with three distinct groups evident. These groups are labelled ‘holistic’, ‘process’ and ‘logistics’ based on the supplier capabilities they emphasise. These three groups of firms also differed in terms of the emphasis they placed on strategic purchasing, supplier evaluation, technological focus and how they compete in their main markets, but not in terms of firm size or number of suppliers utilised. The implications of these findings are discussed and areas meriting future research are proposed.     

HR's strategic role within MNCs: helping build social capital in Latin America

In this article, we adopt a holistic perspective in considering the impact of the country's environment as well as the multinational corporations (MNCs) strategy on human resource (HR) practices. More importantly, we argue that within MNCs human resource management (HRM) is playing a central role in the process of balancing local and global forces. HR can be critical in helping MNCs' deal with local differences while also helping the company implement practices that are critical for its global strategy. Specifically, we argue that HR plays a key role in developing social capital, which may provide the necessary ‘substitutes’ for formal control that would otherwise be neglected. Our contribution lies primarily in outlining how this new role of creating human capital confers on HR the task of filtering mission-critical practices through a ‘localization mesh’ that ensures success. In addition, given the importance of social capital as an informal mechanism that allows MNCs to coordinate and integrate activities, we suggest ways in which an MNC can build social capital within the context of the Latin American pan-regional cultural values.     

Back to Little Havana: Controlling Gentrification in the Heart of Cuban Miami

In this article we examine the nature and implementation of governing strategies to control the gentrification of Little Havana, the symbolic heart of Cuban Miami. We ask how Cuban American power relations at the neighborhood level operate to ‘produce’ the citizen best suited to fulfill and help reproduce policies and practices of ‘securing’ in order to gentrify Little Havana. Based on long‐term ethnographic research in Little Havana and Miami, our analysis reveals how governance operates through neighborhood‐level intermediaries and interpersonal relations. We apply Foucault's ‘pastoral power’ to Miami's Cuban exile community in order to explain how the ‘Cuban‐ness’ and ‘Latin‐ness’ of governing relations and the personification of political power are crucial to socio‐spatial control in Little Havana. Elites shape the conduct of individuals in order to achieve strategic goals in the name of community interest. Residents are key partners in the relational ensemble that governs and disciplines the neighborhood comprised mostly of low‐income, Central‐American immigrants.