Abstract: | Within the international human resource management literature, it is recognized that a range of “host‐country effects” can influence how multinational corporations approach the management of human resources within overseas subsidiaries. This article seeks to further knowledge of these effects by using the findings obtained from two case studies conducted in companies that had come under the control of French multinationals through the Jordanian government's privatization program to explore how subsequent processes of human resource reform were shaped by governmental policies and wider political considerations and the dynamics underlying these shaping processes. In particular, it explores the tensions that arose between government policies and corporate business objectives, the negotiating strategies that the companies adopted in order to resolve them, and the factors that influenced the usage and outcome of these strategies. © 2007 Wiley Periodicals, Inc. |