Based on a sample of 169 subsidiaries of MNCs operating in USA, Russia, and China, this paper investigates the relationship between MNC subsidiary HRM practices, absorptive capacity and knowledge transfer. The paper makes two key contributions. First, the paper examines the relationship between the application of specific HRM practices and the level of the absorptive capacity. Second, the paper suggests that absorptive capacity should be conceptualized as being comprised of two dimensions-ability and motivation. Further, results indicate that the interaction of ability and motivation (absorptive capacity) significantly facilitate transfer of knowledge from other parts of the MNC.-2 -

This study sets out to explore human resource management (HRM) practices in multinational corporation (MNC) subsidiaries within an institutional theory framework. Based on a sample of 158 subsidiaries of MNCs operating in the United States, Russia and Finland, the paper examines factors hypothesised to influence the HRM practices adapted in US, Japanese and European MNC subsidiaries located in Russia, Finland and the US. The results indicate significant differences in HRM practices used across host countries. Both the status of the subsidiary human resource department and the degree to which the subsidiary was involved in knowledge transfer with other parts of the MNC had a significant impact on the selection of HRM practices. Journal of International Business Studies (2007) 38, 430–446. doi:10.1057/palgrave.jibs.8400267

Gerhart and colleagues and Huselid and Becker recently debated the presence and implications of measurement error in measures of human resource practices. This paper presents data from three more studies, one of large organizations from different industries at the corporate level, one from commercial banks, and the other of autonomous business units at the level of the job. Results of all three studies provide additional evidence that single respondent measures of HR practices contain large amounts of measurement error. Implications for future research are discussed. This paper has not undergone formal review or approval of the faculty of the ILR School. It is intended to make results of Center research available to others interested in preliminary form to encourage discussion and suggestions Measurement Error in HR WP00-21Page 2 AbstractGerhart and colleagues and Huselid and Becker recently debated the presence and implications

This paper investigates the extent to which different human resource management (HRM) practices work better in different countries. We also try to open the black box between HRM and multinational enterprise (MNE) subsidiary performance by considering mechanisms through which HRM practices affect MNE subsidiary performance. The study utilizes a unique data set consisting of subsidiaries of 241 MNEs operating in Russia, USA, and Finland. In the partial least-square analysis used to examine our hypotheses, we demonstrate that different HRM practices are preferable in different countries, and that motivation and ability are important mediating variables in the HRM–MNE subsidiary performance relationship. Journal of International Business Studies (2009) 40, 690–712. doi:10.1057/jibs.2008.83

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Given the scarcity of empirical research on the impact of diversity on organizational performance, the authors used longitudinal data for 100 firms to test hypotheses related to the effects of diversity reputation and leader racial diversity on firm financial outcomes. The results showed a positive relationship between diversity reputation and book-to-market equity and a curvilinear, U-shaped relationship among leader diversity and revenues, net income, and book-to-market equity. The analyses suggest that economic benefits generated from diversity reputation may primarily derive from capital rather than product markets. Furthermore, firm performance declines with increases in the representation of racial minorities in leadership up to a point, beyond which further increases in diversity are associated with increases in performance.

This paper examines the differences in perceptions of the importance and effectiveness of HR practices in firms operating in the People's Republic of China. The major finding is that while there are no significant differences between HR and line executives' perceptions of the importance of each functional area in HRM, there are significant differences between line and HR executives' perceptions of the effectiveness of these areas. Line and HR executives both view the issue of securing, developing, and maintaining human resources as a critical issue for the execution of daily operations and long-term strategic plans. However, line executives perceive HR performance effectiveness to be

In the human resource management literature there is an ongoing debate about which is the key organizational resource: human resource (HR) practices or HR capabilities. Our study attempts to address this debate by examining which resource HR executives in the Asia-Pacific region find to be important for the future organizational and people needs of their firms. Results indicate that HR capabilities are central to organizations. Development of core competencies, agile organizations, and effective management of human resources will be pivotal to responding effectively to future business needs. Results also indicate that the lingering effects of the Asian financial crisis and competition from local and global competitors will affect organizational and people management in the years to come. These findings inform HR practitioners and shed light on the application of the resource-based view of the firm to the study of human resource management.