To integrate or not to integrate: HRM practice of Chinese banks in Canada

Abstract

Are emerging market banks necessarily prone to localize HRM when entering developed markets? According to this comparative case study of two Chinese banks in Canada, we instead found a trend toward the integration of HRM with the parent companies’ practices, with varying levels of integration based on factors such as international experience and investment method. Importantly, the current practice, which may appear to be suboptimal in light of the localization imperative, has not prevented the banks from attaining steady financial performance, partly enabled by the carrying-over of home grown customers and the presence of a distinct co-ethnic community. However, such practice may have adverse effects on their long-term success, especially given their claimed aim to become global competitors. A conceptual model is built upon these findings, which also offers important practical implications.