The main goal of the paper is to determine whether the HQs of MNCs evaluate the significances of particular HRM subfunctions to their foreign subsidiaries’ performance differently depending on a specific cultural context and—as a consequence—various configurations of HRM subfunctions may be identified in different cultural contexts. The theoretical assumptions are based on a combination of the configurational and contextual perspectives through a cross-cultural lens. In the empirical research an abductive reasoning process is applied. The research sample covers 200 headquarters of MNCs. To analyze the collected data both descriptive and correlational statistical methods are used. Two patterns of configurational bundle of HRM have been identified: A and B. Pattern A tends to be more system oriented and Pattern B more centralization oriented. Pattern A covers the subsidiaries which, with comparison to their HQ, are of lower power distance, higher individualism, higher masculinity, lower uncertainty avoidance, longer time orientation, and higher indulgence. Pattern B is composed of the subsidiaries with the opposite signs of the cultural distance index. The originality of the study consists in the application of the abductive research model. Thanks to it, we were able to search and find the simplest and most probable explanations for our observations. And the value of the research itself lies in the evidence that the contextual perspective with its configurational implications in the HRM research field is useful in identifying the phenomena that are difficult to identify or unidentifiable otherwise. The findings of the present study provide some knowledge on how cultural distance (external variable) and the significance of HRM to the subsidiary’s performance results (internal variable) interact in impacting on different configurational bundles of HRM subfunctions, their centralization practices and knowledge flows in MNCs.
Abstract:The main goal of the article is to present some differences in the practice of competency management, perceived as a part of human resources management, that were identified in the empirical research conducted in three countries, that is Poland, Spain, and Austria. Our research is placed within cross-cultural HRM and comparative HRM, that together with corporate-international HRM make three theoretical and research streams within international human resources management (IHRM). This is because on one side, the analysis of the research data covers comparison of competency management systems and practices both at the organizational and national level in different countries, but on the other side, we make an attempt to discuss the possible influence of national culture on identified differences.
PurposeWe explore the effects of three organizational variables (country of origin of the multinational company (MNC), the timing of entry into the European Union and the mode of establishment of the MNC subsidiary unit) on the human resource management (HRM) practices being pursued by subsidiaries of large MNCs operating in selected countries in Central and Eastern Europe (CEE) and the Former Soviet Union. Furthermore, we examine whether the degree of autonomy afforded to the subsidiary over its preferred HR recipes is related to overall local unit performance.Design/methodology/approachWe profile the HRM practices of 379 foreign owned subsidiaries located in Bulgaria, Croatia, The Czech Republic, Kazakhstan, Poland, Hungary, Russia, Romania, Serbia and Slovakia. Using descriptive statistics, we present the general characteristics of the sample and we then use bivariate statistical analysis to test our hypotheses relating to the impact of different organizational factors on the HR practice mix implemented in the MNC subsidiaries covered in our survey.FindingsWe find a significant correlation between the annual training budget, the importance of knowledge flow from headquarters (HQs) to the subsidiary and the perceived criticality of training and development and whether the subsidiary is a greenfield site or an acquisition. A correlation was also found between the national timing of EU membership (older members, newer and then candidate countries and non-EU members) and three HR practice variables: the use of expatriates, external service providers and employee relations practices.Research limitations/implicationsOur research calls attention to the issue of balancing the efficiencies of standardization with the local preferences and traditions of customization which results in more successful MNC control and ultimately higher levels of performance. It also calls attention to the challenges in pursuing research of this nature over time in the CEE region, especially given the dynamic nature of the MNC mix in each of the countries.Practical implicationsOur findings serve to reduce the information gap on foreign-owned companies in CEE and the Former Soviet Union.Originality/valueDespite some 30 years of transition, there remains a paucity of empirical research on the HR practices of MNCs across a number of countries in the CEE region. For a decade and a half, the CEEIRT group[1] has been systematically gathering empirical evidence. The combination of the breadth (10 countries) and depth (numerous items related to MNC subsidiary relationships with corporate HQs and patterns of HR practices and roles) characterizing the ongoing research effort of the CEEIRT collaboration serves as a mechanism for augmenting the empirical base on HRM in the region.
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