This paper highlights the evolution and contribution of the institutional theory perspective to the study of human resource management (HRM) transfers between advanced economies and less developed economies owing to institutional dissimilarities. The paper seeks to explore the institutional differences between advanced economies (home) and less developed economies (host) through the lens of institutional theory and how such institutional differences constrain or provide opportunities for the transfer of HRM practices. We develop a conceptual framework through the lens of institutional theory to provide useful and comprehensive insight of factors or conditions to consider when transferring HRM practices from advanced economies to less developed economies where there are institutional dissimilarities. The framework offers a broad perspective of the three dimensions of institutional theory to help multinational enterprises evaluate and explore how the differences in institutional settings between home and host countries may create opportunities or constraints in HRM practice transfers.Keywords: human resource management practices, institutional dissimilarities, institutional theory, international human resource management, multinational enterprises Key points 1 Our conceptual framework identifies those factors or conditions to consider when multinational enterprises transfer human resource management (HRM) practices from advanced economies to their subsidiaries in less developed economies. 2 The framework is based on institutional theory to evaluate and explore how the differences in institutional configurations between home and host countries may create opportunities or constraints in HRM practice transfers. 3 Institutional theory is significant for international HRM research in that it provides a strong foundation in hypothesizing at both home and host country levels with regards to institutional dissimilarities between developed and less developed countries. Newcastle) is a professor of HRM at the School of Management, Curtin University, Perth, Australia. His main research interests are HRM practices in multinational enterprises, work, technology and new employment arrangements, workplace partnerships and consultation and EEO and diversity management in the workplace.Kerry Brown (PhD, Griffith) was a professor of HRM at the School of Management, Curtin University, Perth; however, she is now at Edith Cowan University, Perth, Australia. 1 Her main fields of research are employment relations and public management.
Purpose This study aims to investigate whether the historical and institutional re-construction of Ghana support the transfer of human resource management (HRM) practices and if so, what local conditions support such transfer? Design/methodology/approach The paper draws from an exploratory qualitative study design by assimilating history, culture and institutions (social institutionalist perspective) to explore host-country factors and conditions supporting the transfer of HRM practices in a developing country context. Findings The study finds the colonial history, and the political and economic interests of Ghana to mimic best HRM policies and practices from its colonial masters and other advanced economies provided strong institutional support for the transfer of HRM practices. Research limitations/implications This paper complements the understanding of HRM practice transfer literature by highlighting the significance of host-country historical and institutional re-construction support in developing economies as key drivers for the diffusion of HRM practices. Practical implications By incorporating institutions, history and culture to form the underpinning social context, it offers a new perspective into how historical, cultural and colonial institutional legacies as entrenched social instruments facilitate HRM practice transfer in Sub-Saharan Africa. Originality/value The integration of institutions, history and culture (social institutionalist perspective) provide a wider understanding of factors that denote the effect of Ghanaian contextual distinctiveness as against the continued colonial institutional legacies (inheritance) supporting the transfer of HRM practices. This is the first study to consider how local institutions, culture and history of Ghana support the transfer of HRM practices to subsidiaries.
Purpose The purpose of this paper is to adopt the convergence-divergence perspective to examine the extent of similarities and differences in human resource management practices between multinational enterprise subsidiaries and local firms in Ghana. Design/methodology/approach This paper draws from multiple case study evidence using in-depth face-to-face interviews and document analysis. The data were analyzed in four stages using both thematic analysis and cross-case analysis techniques. Findings The authors found both convergence and divergence, however, the evidence points to more convergence and direction toward convergence between MNEs and local firms’ HRM practices. Research limitations/implications Even though there was evidence of cultural embeddedness within local firms in the adoption of certain HRM practices, the influence of national culture on HRM practice convergence between MNEs and local firms has been limited. Thus, the convergence-divergence debate through the lens of national culture may need to be re-examined. Practical implications The evidence of convergence and direction toward convergence tendencies within the context can be argued to be less underpinned by local isomorphism limited host-country influence. Practically, there is something to learn from indigenous Ghanaian organizations that can contribute to HRM advancement, the Ghanaian concept of annual durbars, annual or semi-annual gatherings to take stock of past activities and to award hard working staff, could provide the platform to strengthen the employer-employee relationship at the firm level. Originality/value This study fills an important contextual gap (a less developed country’s context) within the convergence-divergence debate and contributes to informing new knowledge of the convergence-divergence debate, which points to more convergence and direction toward convergence between MNEs and local firms’ HRM practices.
Purpose The authors propose a strategic-balance approach to local content laws in which less developed economies in sub-Sahara Africa can develop investment incentive policies for attracting multinationals and direct foreign investment but, at the same time, have a structured and operational framework for the enforcement of local content laws. The purpose of the paper is to identify the elements involved in the equation: the incentives, the potential spillovers and the criteria for evaluation. Design/methodology/approach The approach involves a review of the literature and the operational details and limitations of local content laws in sub-Sahara Africa. Findings The paper develops a conceptual model for a holistic understanding and management of this dilemma by policymakers and development practitioners to maximize the benefits of natural resources to less developed countries in sub-Sahara Africa towards the fight against poverty and underdevelopment. Research limitations/implications This paper provides the opportunity to influence policy direction in relation to the adoption of investment incentive policies and programs and the enforcement of local content policy guidelines and regulations in sub-Sahara Africa. Practical implications Multinational companies (MNCs) operating in less developed and emerging economies in sub-Sahara Africa should consider how their economic and corporate social responsibility activities can help develop the capabilities of the local workforce through training and development activities; develop domestic firms’ capabilities via enterprise development programs; and develop local firm’s absorptive capacities through knowledge transfers and innovation systems to support development activities. Social implications Policymakers in less developed and emerging economies in sub-Sahara Africa need to strike a balance in adopting investment incentives policies towards attracting foreign investments and the enforcement of local content regulations to make sure they derive the maximum benefits from their strategic resources. It is important for policymakers to understand that the mere attraction of MNCs into an economy does not explicitly guarantee domestic job creation; rather, it depends on how MNCs respond to local content policy regulations through their business strategies. Linking investment incentives with local content policy regulations at a critical point could potentially support and strengthen industrial development in sub-Sahara Africa. Originality/value This paper is among the first to examine the challenges of both attracting foreign direct investment and enforcing local content laws and regulations in sub-Sahara Africa. This paper contributes to the understanding of this dilemma and how less developed economies can manage such a crucial and important issue using our proposed strategic-balance approach. The contribution of local content laws and the design and adoption of investment incentives policies and programs to attract foreign investment to promoting sustainable domestic growth and development must depend on the balance between the enforcement of local content policy guidelines and the provision of such investment incentive packages to attracting foreign investment.
This paper highlights the nature of individualistic employee voice in the context of contemporary Indian organisations. As the demand for knowledge workers increase, more organisations are finding that employee voice is critical for developing business intelligence. Yet, organisations often find their employees mostly silent despite the potential of knowledge sharing. Considering the benefits and the implicit costs associated with employee voice, the paper draws on senior executives' accounts of employee voice that represent varied industry sectors and uses qualitative content analysis. The findings indicate broad themes around the nature, content, boundaries, avenues, and targets of voice along with its underlying mechanisms. The paper extends management perspectives on employee voice behaviour and contributes towards understanding the intricacies of individual dynamics and human experience in voice scholarship. The study has implications for Indian indigenous voice research and practice.
Purpose Using an institutionalist perspective, and through a case study analysis, the purpose of this paper is to examine whether subsidiaries of MNEs demonstrate a convergence across their HRM practices in a less developed host-country context. Design/methodology/approach This paper reports on an exploratory qualitative study involving five MNEs subsidiaries that operate in Ghana and originate from the UK, France, Germany, and India. The authors applied thematic and cross-case analysis techniques to explore similarities and differences in their HRM practices by drawing data from in-depth face-to-face interviews and document analyses. Findings Findings suggest that MNE subsidiaries demonstrate more convergence across their HRM practices as well as other HRM characteristics. Despite the similarities in their HRM practices, the evidence suggests that MNE subsidiaries’ HRM practices were similar to corporate headquarters HRM practices. It appears that the host-country has less influence in driving their convergence but rather the country-of-origin effect; competitive isomorphic pressure and global integration benefits were driving their convergence across their HRM practices. Originality/value This study makes a contribution to the convergence-divergence literature in the international HRM (IHRM) domain with specific focus on addressing an under-researched context of less developed host-countries. One of the puzzles in comparative and IHRM literature yet to be resolved is the convergence-divergence thesis of firms’ HRM practices.
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