Implementing HRM within multinational corporations: Localisation or global standardisation?

Kynighou, Anastasia

doi:10.4337/9781788975599.00046

Cited by 1 publication

(5 citation statements)

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“…This view explains why behaviour that did not fit the cultural norm of a nation, society or group and was perceived as individual-centred was concealed, renounced or denied, causing dysfunctionality in employee relations. Consequently, many advocates of localisation believe that locally modified practices were more effective than standardised practices (Azungah, 2017;Chung et al 2014;Kynighou, 2020). The results obtained from this study supported the argument that, due to cultural and institutional forces, HRM practices in the EMNCs' subsidiaries in Nigeria would resemble local norms to some degree, and that different HRM practices were subject to different transfer levels.…”

Section: Socio-cultural Elementssupporting

confidence: 72%

“…These findings aligned with studies that suggested that HRM practices from the parent company were superior and, therefore, consequently adopted. Arguably a home country that was more advanced than the host country would tend to transfer standardised HRM practices to their subsidiaries (Geary & Nyiawung, 2021;Kynighou, 2020). However, this argument did not hold for more specific HRM practices, such as compensation and industrial relations (Adams et al 2017).…”

Section: Discussionmentioning

confidence: 99%

“…MNCs usually prefer their headquarters established practices to those transferred from subsidiaries. Likewise, awareness of nationalistic supremacy, which results from employees not accommodating different methods, may hinder the transfer process (Farndale & Sanders, 2017;Kynighou, 2020). While these psychological and institutional barriers can be present in all cross-border transfer types, resistance to approving HRM practices from foreign subsidiaries could be predominantly strong (Patel & Bhanugopan, 2017).…”

Section: Reverse Diffusionmentioning

confidence: 99%

“…While these psychological and institutional barriers can be present in all cross-border transfer types, resistance to approving HRM practices from foreign subsidiaries could be predominantly strong (Patel & Bhanugopan, 2017). It is clear that there is evidence of the host country effect leading to the transfer occurring in this direction, and reverse diffusion is expected to be most common in MNCs from dominant countries, as the two forces reinforce one another (Ayentimi et al 2018a;Kynighou, 2020). However, in MNCs from developing economies, or a developed economy that is performing poorly, the dominance effect will challenge the host country effect.…”

Section: Reverse Diffusionmentioning

confidence: 99%

“…Primarily MNCs have to consider local values, customs, and the cultural environment in designing and implementing their employment practices to their foreign subsidiaries (Adams et al 2017;James & Baruti, 2021). These human, social, and environmental factors are as essential as the financial and marketing considerations through which decisions of employment practices need to be addressed (Edwards, Sanchez-Mangas, et al 2016;Kynighou, 2020;Wilton, 2016). Following the discussion of the typical Nigerian economic, social, legal and cultural context, the following section examines the Nigerian HRM practices.…”

Section: Human Resource Functions In Nigeriamentioning

confidence: 99%

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South African MNCs’ HRM Systems and Practices at the Subsidiary Level: Insights From Subsidiaries in Nigeria

Bako¹

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Despite the extensive literature on multinational companies’ (MNCs) human resource management (HRM) systems and practices from developed countries, there are gaps in the literature concerning emerging countries multinational companies’ (EMNCs) HRM practices and systems at home and host countries. This thesis examines the transfer of HRM practices in Nigerian subsidiaries of MNCs from South Africa (an emerging country). This study empirically examines the similarities and differences of South African MNCs’ HRM systems and practices at both the South African headquarters and the subsidiaries in Nigeria. Purposely, the study attempts to shed light on the nature of the employment practices, the transfer of HRM practices and the factors that influence the transfer process. The study adopted a qualitative approach with data/evidence collected through in-depth semi-structured interviews. It focused on group discussions conducted in the subsidiaries of three South African MNCs in Nigeria. The data was gathered primarily from HR managers, directors and officers in the Nigerian subsidiaries of the South African MNCs. The study revealed that the South African MNCs hybridised their recruitment and selection processes and localised compensation and employee relations. However, performance appraisal, talent management and code of conduct practices were mainly transferred to subsidiaries with minimal adaptation to contextual realities. Further research and practical implications are discussed in this thesis.

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Section: Socio-cultural Elementssupporting

confidence: 72%