A Review of Theories on Transnational Transfer of HR Practice within Multinationals

Abstract

This article discusses the process of transferring human resource (HR) policy and practice internationally within multinational companies (MNCs), and the factors that influence the transfer process. The first section thoroughly surveys the literature on why MNCs transfer HR practices across borders and generalizes three lines of arguments. The second section looks at "what to transfer" with regard to particular HR issues, and points to a gap in the literature. The next section briefly reviews three main methods of transfer adopted by MNCs. Finally, the results of transfer are discussed both prescriptively and descriptively in light of Kostova's (1999) multilevel model. The arguments presented in this article have two main implications which are summarized in the conclusion.

HR practices from the perspective of managers and employees in multinational enterprises in China: Alignment issues and implications

“…The explanations for this include: the role of MNEs as ''teaching agents'' (Fan, 1998, p. 217); MNE managers' belief in the effectiveness of Western high-performance HRM systems (Bjö rkman & Fan, 2002); and convergence to MNEs' world-wide best practices in HRM (Bjö rkman, 2002;Warner, 2003). However, within the research stream focussed on the transfer of HRM knowledge and practices from advanced economy MNEs to their Chinese subsidiaries (e.g., Bjö rkman, 2002;Bjö rkman et al, 2008;Gamble, 2010;Gamble & Huang, 2009;Walsh & Zhu, 2007;Yu & Wu, 2009), few researchers have examined issues in the period following knowledge transfer. Such issues include whether employees in subsidiaries all have the knowledge of intended HR practices transferred, whether they all have the same experience of actual HR practices, and how managers and employees perceive effectiveness of HR practices in operation.…”

The Oligarchic Diffusion of Public Policy

“…The transnational policy transfer literature is substantial yet very case specific, seeking to explain, for instance, transfer in such domains as how transnational feminist networks promote “gender mainstreaming” policies (True and Mintrom 2001), how policy entrepreneurs transfer business improvement district policies (Hoyt 2006), or how multinational corporations transfer human resource policies (Yu and Wu 2009). In contrast, the literature on the global diffusion of public policies (see especially, Dobbin, Simmons, and Garrett 2007; Jenson 2010) does offer compelling alternative models on transnational policy transfer.…”