TY - JOUR
T1 - Home country and firm-specific advantage influences on HRM replication versus adaptation in EMNEs operating in advanced economies
T2 - A qualitative comparative analysis
AU - Patel, Parth
AU - Bhanugopan, Ramudu
AU - Sinha, Paresha
AU - Prikshat, Verma
AU - Boyle, Brendan
N1 - Publisher Copyright:
© 2023 Elsevier Inc.
PY - 2024/1
Y1 - 2024/1
N2 - This article examines a variety of home and host-country factors and explains how they influence the global integration versus local adaptation of human resource management (HRM) in subsidiaries of emerging multinational enterprises (EMNEs) in advanced economies. The study draws on data collected from 15 multiple case studies using semi-structured interviews with senior directors and managers working in Australian subsidiaries of Indian multinational enterprises (MNEs) operating in the information technology (IT) services industry. The findings reveal that despite originating from weak institutions, Indian IT service MNEs do not face hurdles in replicating their home-country HRM model to their subsidiaries in Australia. International staffing of expatriates was a key industry-specific resource and capability enabling reverse country-of-origin effect to allow the Australian subsidiaries to be managed ethnocentrically. This article challenges the notion that EMNEs struggle to adapt their indigenous HRM systems and model due to weak institutions as it sheds light on the reverse relationship that exists between management practices and country-of-origin in leveraging home-country institutions. It also demonstrates that EMNEs derive competitive advantages mainly from their traditional firm and industry-specific resources and capabilities which allow them to achieve global integration of HRM.
AB - This article examines a variety of home and host-country factors and explains how they influence the global integration versus local adaptation of human resource management (HRM) in subsidiaries of emerging multinational enterprises (EMNEs) in advanced economies. The study draws on data collected from 15 multiple case studies using semi-structured interviews with senior directors and managers working in Australian subsidiaries of Indian multinational enterprises (MNEs) operating in the information technology (IT) services industry. The findings reveal that despite originating from weak institutions, Indian IT service MNEs do not face hurdles in replicating their home-country HRM model to their subsidiaries in Australia. International staffing of expatriates was a key industry-specific resource and capability enabling reverse country-of-origin effect to allow the Australian subsidiaries to be managed ethnocentrically. This article challenges the notion that EMNEs struggle to adapt their indigenous HRM systems and model due to weak institutions as it sheds light on the reverse relationship that exists between management practices and country-of-origin in leveraging home-country institutions. It also demonstrates that EMNEs derive competitive advantages mainly from their traditional firm and industry-specific resources and capabilities which allow them to achieve global integration of HRM.
KW - Advanced economies
KW - Australian subsidiaries
KW - Emerging MNEs
KW - Global integration versus local adaptation
KW - Human resource management
KW - Indian IT service MNEs
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U2 - 10.1016/j.jbusres.2023.114335
DO - 10.1016/j.jbusres.2023.114335
M3 - Article
AN - SCOPUS:85178438522
SN - 0148-2963
VL - 170
SP - 1
EP - 18
JO - Journal of Business Research
JF - Journal of Business Research
M1 - 114335
ER -