8/9/2019 10.Ferner, Anthony. HRM in Multinational Companies

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HRM in Multinational Companies

Anthony Ferner

• INTRODUCTION 

• CHARACTERISING IHRM AS A FIELD OF STUDY 

• THE EVOLUTION OF HRM IN MULTINATIONALS AS A FOCUS OF

STUDY 

• THE SUBSTANTIVE FOCUS OF IHRM 

• THEMATIC AND CONCEPTUAL CONCERNS 

• THE ROLE OF THE FUNCTION IN MULTINATIONALS 

• METHODOLOGICAL APPROACHES TO THE STUDY OF IHRM 

• CONCLUSIONS: FUTURE DIRECTIONS IN INTERNATIONAL HUMAN

RESOURCE MANAGEMENT 

•  NOTES 

• ENTRY CITATION 

INTRODUCTION

This chapter c!si"ers the #a!a$e#e!t % h&#a! res&rces acrss 'r"ers (ithi!

#&)ti!ati!a) c#pa!ies *MNCs+, This (i)) 'e re%erre" t as -i!ter!ati!a) h&#a!

res&rce #a!a$e#e!t. *IHRM+, The ter# has 'ee! &se" i! a /ariet0 % (a0s i! the

)iterat&re1 a!" !e % the tas2s % the chapter (i)) 'e t c)ari%0 the terrai! t (hich it

re%ers, The chapter %irst assesses the #ea!i!$ % IHRM a!" its e/)&ti! as a %ie)" %

st&"0, Sec!"1 it s&##arises the c!cept&a)1 s&'sta!ti/e a!" #eth")$ica) precc&pati!s % (r2 i! this area, A#!$ the iss&es re/ie(e" is !e % the "e%i!i!$

3&esti!s % IHRM1 the -tra/e). % p)icies a!" practices 'et(ee! c&!tries: the

c!"iti!s &!"er (hich s&ch "i%%&si! ta2es p)ace1 the !at&re % the "i%%&si! prcess1

a!" the i#pact % hst e!/ir!#e!ts ! tra!s%erre" practices, A)s e4a#i!e" is the

!at&re % IHRM as a #a!a$e#e!t %&!cti!: h( it is str&ct&re"1 h( it is e/)/i!$1

a!" the characteristics that "isti!$&ish it %r# HRM i! a "#estic setti!$, Fi!a))01 the

chapter c!si"ers areas (here the &!"ersta!"i!$ % IHRM is &!"er"e/e)pe" a!"

s&$$ests s#e "irecti!s %r the e/)&ti! % IHRM research i! the %&t&re,

CHARACTERISING IHRM AS A FIELD OFSTUD

The "e%i!iti! % IHRM is a /e4e" 3&esti! si!ce1 as ar$&e" 'e)(1 the %c&s % the

area has 'ee! e4cessi/e)0 !arr(, A re)ati/e)0 'ra" perspecti/e ! IHRM is capt&re"

i! the %))(i!$ "e%i!iti! %r# Ta0)r et a), *5667: 678+, A! MNC9s IHRM s0ste# is:

-The set % "isti!ct acti/ities1 %&!cti!s a!" prcesses that are "irecte" at attracti!$1

"e/e)pi!$ a!" #ai!tai!i!$ a! MNC9s h&#a! res&rces, It is th&s the a$$re$ate % the

/ari&s HRM s0ste#s &se" t #a!a$e pep)e i! the MNC1 'th at h#e a!"

/erseas.,

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The esse!ce % IHRM1 (hich "isti!$&ishes it %r# HRM i! "#estic c#pa!ies1 is

that it "ea)s (ith the #a!a$e#e!t % e#p)0ees across countries1 a!" he!ce acrss

"i%%ere!t s0ste#s %r r$a!isi!$ '&si!ess i! $e!era) a!" h&#a! res&rces i! partic&)ar,5  Fr this reas!1 there is a str!$ /er)ap 'et(ee! IRHM a!" the %ie)" %

comparative HRM *see chapters 6 a!" ; i! this /)&#e+, Ta0)r et a),9s "e%i!iti!

 pi!ts t a cr&cia) 3&esti!: (hat is the re)ati!ship 'et(ee! HRM s0ste#s (ithi!"i%%ere!t !ati!a) perati!s % a! MNC1 a!" HRM s0ste#s (ithi! the MNC that

tra!sce!" !ati!a) 'r"ers< The %act % perati!$ acrss 'r"ers (&)" !t #atter i%

!ati!a) s0ste#s (ere hi$h)0 c!/er$e!t, B&t1 "espite "e'ates a'&t c!/er$e!ce

ste##i!$ %r# -$)'a)isati!.1 si$!i%ica!t "i%%ere!ces re#ai! *a!" i!"ee" !e( !es

e#er$e+ i! h( c&!tries r$a!ise '&si!ess acti/it0 a!"1 #re speci%ica))01 the

#a!a$e#e!t % e#p)0ees *e,$, Bre(ster et a),1 88=+,

A2e0 3&esti! %r IHRM is h( t c!cept&a)ise s&ch crss>!ati!a) "i%%ere!ces,

U!ti) rece!t)0 the "#i!a!t para"i$# has 'ee! 'ase" ! -c&)t&ra) /a)&es.1 )ar$e)0

"ra(i!$ ! the (r2 % H%ste"e *56;8+, This perspecti/e s&$$ests that persiste!t

"i%%ere!ces i! crss>!ati!a) 'eha/i&r "eri/e %r# %&!"a#e!ta) "i/er$e!ces i! "eep>seate"1 )!$>)asti!$ /a)&es, E4p)a!atr0 #"e)s1 "ra(i!$ ! H%ste"e9s "i#e!si!s1

ha/e 'ee! &se"1 %r e4a#p)e1 i! pa0 practice *e,$, Ne(#a! a!" N))e!1 5667? Rth

a!" O9D!!e))1 5667? Sch&)er a!" R$/s201 566;+? i! e#p)0#e!t "iscri#i!ati!

*La()er a!" Bae1 566;+? i! &p(ar" appraisa) *A"sit et a),1 566@+? a!" #re $e!era))0

i! assessi!$ the tra!s%er % HR practices *e,$, N$ et a),1 566;+,

The c&)t&ra) /a)&es perspecti/e has ha" a! i#prta!t r)e i! "ra(i!$ atte!ti! t the

"i%%ic&)ties % -!e>'est>(a0. #"e)s % IHRM, The &!"er)0i!$ 3&esti!s *c%, C)ar2 et

a),1 5666: 8+ are: h( ca! -#&)tic&)t&ra). r$a!isati!s 'e #a!a$e"1 a!" t (hat

e4te!t are #"i%icati!s !ecessar0 t pare!t>c&!tr0 c&)t&re i! a! MNC9s perati!s

a'ra"< Despite its c!tri'&ti!1 it is "i%%ic&)t t "iscer! 3&ite (h0 this partic&)ar1

esse!tia))0 -i"ea)ist.1 apprach t !ati!a) "i%%ere!ce has ha" s&ch a per/asi/e i#pact,

O!e e4p)a!ati! #a0 )ie i! the ease (ith (hich /a)&e "i#e!si!s ca! 'e re"&ce" t

a$$re$ate scres that a))( si#p)e1 i% )ess tha! e!)i$hte!i!$1 crss>c&!tr0

c#paris!s, The #eth")$ica) 'asis a!" e4p)a!atr0 /a)&e % the apprach ha/e

 'ee! 3&esti!e"1 'th %r# (ithi! a!" &tsi"e a c&)t&ra)ist perspecti/e *see e,$,

Gerhart a!" Fa!$1 88? McS(ee!e01 88+, A!"1 as C)ar2et a), *5666: 5+ !te1

-c&)t&ra) /aria')es are c##!)0 i!tr"&ce" e4 pst as e4p)a!atr0 /aria')es (ith&t

a! a priri e4p)a!ati! % their c!te!t a!" ri$i!s., Despite s&ch c!cer!s1 the

i!%)&e!ce % the -c&)t&ra)ist. apprach is sti)) str!$1 re%)ecte" i! the %r#ati! % a

!e( &r!a) i! 8881 the International Journal of Cross-cultural Management 1&!"erpi!!e" '0 c!cer!s (ith crss>c&)t&ra) "i%%ere!ces i! /a)&es,

I! rece!t 0ears1 (riters ! IHRM ha/e i!creasi!$)0 a"pte" a #re -i!stit&ti!a)ist.

 perspecti/e t &!"ersta!"i!$ crss>!ati!a) "i%%ere!ces *e,$, E"(ar" a!" Rees1 887?

st/a1 5666+, The esse!ce % a c#parati/e i!stit&ti!a)ist apprach *e,$,

Ca#p'e))1 88=? Cr&ch1 88? Ha)) a!" Ss2ice1 885+ is t see2 e4p)a!ati!s %r

"i%%ere!ces i! 'eha/i&r i! the (a0 i! (hich ec!#ic acti/it0 is str&ct&re" (ithi!

-!ati!a) '&si!ess s0ste#s., This i!/)/es the care%&) a!a)0sis % the %r#a) a!"

i!%r#a) i!stit&ti!s that ha/e e/)/e" /er ti#e t $/er! '&si!ess acti/it0, Fr

e4a#p)e1 the (a0 i! (hich %ir#s re)ateteach ther i! #ar2ets1 h( ec!#ies

$e!erate the s2i))s the0 !ee"1 the "i/isi! % )a'&r a!" the "e%i!iti! % tas2s (ithi! pr"&cti/e acti/it01 the $/er!a!ce % %ir#s1 the )e$is)ati/e %ra#e(r2 set '0 !ati!a)

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states1 a!" s0ste#s %r the #a!a$e#e!t % %ir#e#p)0ee re)ati!s a)) s&ppse

"isti!cti/e i!stit&ti!a) arra!$e#e!ts that ca!!t 'e "e"&ce" %r# "i%%ere!ces i! a

ha!"%&) % c&)t&ra) /a)&es -"i#e!si!s.,

This is !t t sa0 that c&)t&ra) /a)&e "i%%ere!ces are irre)e/a!t1 #ere)0 that '0

the#se)/es the0 are i!a"e3&ate %r#s % e4p)a!ati!? the0 " !t capt&re rea)"i%%ere!ces i! the (a0s i! (hich ec!#ic acti/it0 is r$a!ise" i! "i%%ere!t c&!tries1

a!" thr( )itt)e )i$ht ! prcesses % cha!$e a!" e/)&ti! (ithi! '&si!ess s0ste#s,

The rea) 3&esti! is h( /a)&es a!" !r#s i!%r# a!" i! t&r! are shape" '0 the

e/)/i!$ i!stit&ti!s that $/er! ec!#ic )i%e as actrs (ith rea) p(er a!"

"isti!cti/e i!terests c!str&ct i!stit&ti!a) arra!$e#e!ts1 #"i%0 the# a!" are i! t&r!

c!strai!e" a!" shape" '0 the#,

Fr# this perspecti/e1 the cre % IHRM as a %ie)" #a0 'e characterise" as h(

MNCs #a!a$e (r2%rces sprea" /er #&)tip)e !ati!a)>i!stit&ti!a) -"#ai!s.1

%te! (ith /er0 "i%%ere!t (a0s % r$a!isi!$ '&si!ess acti/it0, Variati!s 'et(ee!

s&ch i!stit&ti!a) "#ai!s are $e!era))0 #re si$!i%ica!t tha! thse %&!" (ithi! a!0si!$)e "#ai!, This is !t t sa0 that !ati!a) i!stit&ti!a) arra!$e#e!ts are

h#$e!e&s, B&t the !ati!a) )e/e)1 cr"i!ate" '0 the acti!s % a! /erarchi!$

!ati!a) state1 is 2e0 t &!"ersta!"i!$ /ariati!s i! i!stit&ti!a) c!te4t %ace" '0

MNCs i! "i%%ere!t hst e!/ir!#e!ts, Ma!0 !ati!a) i!stit&ti!a) -s&'>s0ste#s.1 s&ch

as i!"&stria) re)ati!s #achi!eries1 /cati!a) e"&cati! a!" trai!i!$1 r the )e$a)

%ra#e(r2 % e#p)0ee r &!i! ri$hts1 ha/e a /er0 "irect i!%)&e!ce ! h( MNCs

perate i! the terrai! % HRM, Other s&'>s0ste#s e,$, %i!a!cia) #ar2ets r %ir#

$/er!a!ce str&ct&res #a0 ha/e #re i!"irect *th&$h sti)) p(er%&)+ i!%)&e!ce !

h( e#p)0ees are #a!a$e",

There is re)ati/e)0 )itt)e (r2 ! c#parati/e HRM  per se, Ye&!$ a!" !$ *5668+

"e/ise" a #atri4 capt&ri!$ t( "i#e!si!s % /ariati!: a! e#phasis ! per%r#a!ce

/ers&s a! e#phasis ! i!"i/i"&a) (e)%are? a!" a re)ia!ce ! i!ter!a) /ers&s a re)ia!ce

! e4ter!a) )a'&r #ar2ets, H(e/er1 as Sch&)er et a), *88: @+ !te1 the &ti)it0 %

the #"e) is )i#ite" '0 the %ai)&re t c!si"er the r)e % the state1 r t i!crprate

#acr>)e/e) re)ati!s 'et(ee! e#p)0ers1 the state a!" r$a!ise" )a'&r, Mre

sphisticate"1 c#parati/e>histrica) appraches *e,$, ac'01 88=+ appear t %%er a

%r&it%&) (a0 %r(ar" %r $e!erati!$ a! &!"ersta!"i!$ % the critica) /aria')es, ac'09s

st&"0 % the e/)&ti! % the HRM %&!cti! i! US a!" apa!ese %ir#s hi$h)i$hts s&ch

%actrs as state i!ter/e!ti! a!" re$&)ati!1 the !at&re % crprate $/er!a!ce1 the

"e$ree % )a'&r &!rest a!" the ti$ht!ess % )a'&r #ar2ets as "ri/ers % the HR%&!cti!9s r)e,

The e4iste!ce % i!stit&ti!a) "i%%ere!ces 'et(ee! c&!tries (&)" !t #atter i%

MNCs (ere #ere)0 c))ecti!s % 3&asi>a&t!#&s !ati!a) s&'si"iaries rie!tate"

t their respecti/e )ca) #ar2ets, I!creasi!$)01 h(e/er1 s&ch a #"e) % #&)ti!ati!a)

r$a!isati! is the e4cepti! as %ir#s tr0 t e4p)it ec!#ies % sca)e r % the scpe

%r i!ter!ati!a) r$a!isati!a) )ear!i!$ '0 cr"i!ati!$ their acti/it0 acrss c&!tries

*Bart)ett a!" Ghsha)1 566;? Dic2e!1 88+, S&ch cr"i!ati! #a0 i!/)/e1 %r

e4a#p)e1 the i!ter!ati!a) sta!"ar"isati! % prcesses a!" pr"&cts, This #a0 ha/e

 pr%&!" i#p)icati!s %r HRM: i! r"er t pr/i"e a sta!"ar"ise" pr"&ct t

c&st#ers $)'a))01 %ir#s #a0 see2 t sta!"ar"ise s2i))s a!" trai!i!$ acrss c&!tries,O! this #"e)1 )ca) press&res are c!strai!ts ! the $)'a) cr"i!ati! % MNCs9

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acti/ities, H(e/er1 as E"(ar"s a!" &r&/i))a *88+ pi!t &t1 )ca) i!stit&ti!a)

/ariati! is a)s a! pprt&!it0 %r cr"i!ati!$ acti/it0 i! a -se$#e!te". (a0 thr&$h

a! i!ter!ati!a) "i/isi! % )a'&r r $)'a) -/a)&e chai!. *e,$, i)2i!s! et a),1 885+,

I! se$#e!te" cr"i!ati!1 crprate "ecisi!>#a2ers e4p)it !ati!a) i!stit&ti!a)

"i%%ere!ces i! r"er t c!%i$&re $)'a) /a)&e chai!s i! the #st e%%ecti/e #a!!er1 e,$,

 '0 )cati!$ )( s2i)) perati!s i! c&!tries (hse )a'&r #ar2ets are pr)0re$&)ate" a!" (here )a'&r csts are )(,

S#e (riters ha/e criticise" the %c&s ! !ati!a) "i%%ere!ce as a 2e0 e4p)a!atr0

/aria')e, C))i!$ a!" C)ar2 *88+1 %r e4a#p)e1 stress the i#prta!ce % sectr1 a!"

(riters s&ch as at a!" Dar'ishire *888+ ar$&e that i!ter!ati!a) c#petiti! )ea"s

t i!creasi!$ c!/er$e!ce 'et(ee! %ir#s (ithi! $)'a) sectrs *(ith si#i)ar #ar2ets1

tech!)$ies1 s2i))s re3&ire#e!ts1 a!" s %rth+1 a!" $r(i!$ "i/er$e!ce 'et(ee!

%ir#s i! "i%%ere!t sectrs (ithi! the sa#e c&!tr0, N!ethe)ess1 the i#prta!ce %

sectr "es !t &!"er#i!e a c#parati/e i!stit&ti!a) perspecti/e, Sectra)

$/er!a!ce str&ct&res are1 %r i!sta!ce1 %te! !ati!a))0 speci%ic *e,$, H))i!$s(rth et

a), 566=+1 (hi)e MNCs % "i%%ere!t !ati!a)it0 te!"1 %r reas!s Prter *5668+ (&)"ascri'e t c#petiti/e a"/a!ta$es rte" i! !ati!a) ec!#ies1 t c!ce!trate

acti/ities i! partic&)ar sectrs, C#petiti! i! the (r)" ec!#0 ta2es p)ace ! the

 'asis % s2i))s1 res&rces a!" c#petiti/e a"/a!ta$es that are )cate" (ithi! speci%ic

i!stit&ti!a) c!%i$&rati!s i! "i%%ere!t hst c&!tries, The 3&esti!1 there%re1 is h(

!ati!a)>i!stit&ti!a) %actrs interact  (ith sectr1 a!" h( s&ch i!teracti! i!%)&e!ces

IHRM,

THE E!OLUTION OF HRM IN

MULTINATIONALS AS A FOCUS OF STUD

As Brisce a!" Sch&)er *88=: chapter 5+ ha/e c)ai#e"1 IHRM is % /er0 rece!t

"e/e)p#e!t as a! area % practice a!" research? it (as !)0 %r# the 5668s1 %r

e4a#p)e1 that the -G)'a) Fr&#. % the US Sciet0 %r H&#a! Res&rce

Ma!a$e#e!t *SHRM+ 'eca#e -#re tha! a %air)0 s#a)) $r&p % se!ir IHR

#a!a$ers %r# the )ar$e US MNEs. c!cer!e" pri#ari)0 (ith e4patriates a!" the

esta')ish#e!t % )ca) s&'si"iaries *p, @+, Practiti!er c!cer! $re( i! the 56;8s a!"

5668s1 i! step (ith the $r(th i! the !&#'er % -tra!s!ati!a) crprati!s.1 a!" i!

their -tra!s!ati!a)>it0 i!"e4.1 a #eas&re % the e4te!t % their perati!s &tsi"e their

"#estic 'ase *UNCTAD World Investment Report 1 /ari&s 0ears+,

Aca"e#ica))01 the peri" (as #ar2e" '0 the %&!"ati! % the International Journal

of Human Resource Management  i! 5668, I! their /a)&a')e re/ie(1 C)ar2 et a), *5666+

i"e!ti%ie" 55; artic)es ! IHRM %r# 6 &r!a)s *a!" 88 #re ! c#parati/e

HRM+ p&')ishe" 'et(ee! 56@@ a!" 566@, Gr(th s&'se3&e!t)0 acce)erate": /er the

%))(i!$ !i!e 0ears *566;887+1 the International Journal of Human Resource

 Management  a)!e p&')ishe" #re tha! 578 artic)es pri#ari)0 c!cer!e" (ith IHRM

*a&thr9s cate$risati!+? i! 885 the &r!a) #/e" %r# si4 t ei$ht iss&es a 0ear1

a!" i! 88 t 5 iss&es a 0ear,

THE SU"STANTI!E FOCUS OF IHRM

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The s&'sta!ti/e ra!$e % IHRM research has 'ee! rather !arr(, The si!$)e #st

si$!i%ica!t %c&s % atte!ti!1 "ri/e! '0 p)ic0 a!" practice c!cer!s1 has 'ee! the

the#e % e4patriates, Near)0 8 per ce!t % IHRM artic)es i! the International Journal 

of Human Resource Management  are pri#ari)0 c!cer!e" (ith e4patriates *a&thr9s

c)assi%icati!+, &esti!s c!cer!i!$ the se)ecti!1 trai!i!$1 a"&st#e!t1

c#pe!sati!1 repatriati!1 a!" %ai)&re % e4patriates c!ti!&e t 'e the sta!"ar" %are% this stra!" % research, Latter)01 (#e! e4patriates ha/e pr/i"e" a! a""iti!a)

%c&s *e,$, A")er1 88+, S#eti#es1 e4patriates ha/e 'ee! c!si"ere" i! the 'ra"er

c!te4t % $)'a) sta%%i!$ iss&es *e,$, Har/e0 et a),1 885+, A #&ch s#a))er1 a!"

theretica))0 #re res!a!t1 e)e#e!t c!cer!s the %&!cti!s per%r#e" '0 e4patriates1

$i!$ 'ac2 t the c)assic (r2 % E"strJ# a!" Ga)'raith *56@@+? #re rece!t (r2

)2s at the r)e % e4patriates i! 2!()e"$e "i%%&si! *e,$, De)is a!" BJr2#a!1

888? N/ice/ic a!" Har/e01 885+ a!" i! s0ste#s % crprate c!tr) *Hari!$1

5666+, E4patriates ha/e a)s 'ee! the %c&s % IHRM teachi!$1 "#i!ati!$ $ra"&ate

IHRM te4t'2s *e,$, D()i!$ et a),1 5666? Brisce a!" Sch&)er1 88=+? "isc&ssi! % 

s&'sta!ti/e HR iss&es s&ch as p)a!!i!$1 se)ecti!1 re#&!erati!1 a!" trai!i!$ a!"

"e/e)p#e!t c!ce!trates ! e4patriate e#p)0ees, E/e! the te4t '0 Sc&))i! a!"Li!eha! *88+1 (hich c)ai#s t $ 'e0!" e4patriates1 e!"s &p %c&si!$ str!$)0 !

the iss&e, The precc&pati! (ith this $r&p % e#p)0ees is see! '0 Sch&)er et a),

*88+ as re%)ecti!$ the eth!ce!tric 'ias % Nrth A#erica! sch)ars: it is c!siste!t

(ith e%%rts '0 US MNCs t #a!a$e %rei$! perati!s thr&$h pare!t>c&!tr0

!ati!a)s, I! rece!t 0ears1 the 'a)a!ce % the )iterat&re has shi%te" s#e(hat t

e4a#i!e (hat #i$ht 'e ter#e" %&!cti!a) a)ter!ati/es t e4patriates i!ter!ati!a)

tas2 %rces1 shrt>ter# assi$!#e!ts1 /irt&a) tea#s a!" the )i2e *e,$, Har/e0 et a),1

88? S!e)) et a),1 566;? Tre$as2is et a),1 88+,

hi)e e4patriate c!cer!s ha/e "#i!ate" the a$e!"a1 HR iss&es s&ch as pa0 ha/e

recei/e" si$!i%ica!t atte!ti! i! their (! ri$ht, I! pa0 a!" per%r#a!ce #a!a$e#e!t

there has 'ee! c!cer! (ith the "e/e)p#e!t % -c&)t&ra))0 se!siti/e. $)'a)

re#&!erati! p)icies *e,$, Sch&)er a!" R$/s201 566;+? Li!"h)# et a), *5666+

%&!" that per%r#a!ce appraisa) s0ste#s % E&rpea! MNCs9 Chi!ese s&'si"iaries

ha" t 'e si$!i%ica!t)0 a"apte" t )ca) c&)t&re, Li'er#a! a!" Tr'iJr! *888+ )2e"

at a! MNC9s s&ppse")0 sta!"ar"ise" re$i!a) per%r#a!ce assess#e!t pr$ra##e i!

ei$ht E&rpea! c&!tries a!" %&!" (i"e /ariati!s i! i#p)e#e!tati! acrss

c&!tries1 -%r# tta) a"here!ce t c#p)ete a'se!ce % 3&a!titati/e per%r#a!ce

assess#e!t % i!"i/i"&a)s a#!$ !!>#a!a$eria) sta%%. *p, =@+, M&ch % this (r2

sees !ati!a) "i%%ere!ce pri#ari)0 i! ter#s % c&)t&ra) /a)&es *e,$, Ne(#a! a!"

 N))e!1 5667? Sch&)er a!" R$/s201 566;+1 '&t ther (r2 is #re c!cer!e" (ithi!stit&ti!a) "i%%ere!ces a!" their i#pact ! MNCs9 pa0 a!" per%r#a!ce s0ste#s

*e,$, A)#!" et a),1 887+,

Other i!"i/i"&a) aspects % HRM ha/e )ess %te! 'ee! the s&'ect % atte!ti!1 th&$h

there is (r2 ! #a!a$e#e!t "e/e)p#e!t *e,$, E/a!s et a),1 56;6? B&t)er et a),1

887+? trai!i!$ *e,$, McPhers! a!" Rche1 566@+? recr&it#e!t *e,$, G&#p1 887+?

a!" (r2%rce -"i/ersit0. r e3&a) pprt&!it0 p)ic0 *C)e a!" Des2i!s1 56;;? Fer!er 

et a),1 88? McGa&ra!1 885+, I! the 5678s a!" 56@8s1 there (as c!si"era')e "e'ate1

)ar$e)0 i! IR rather tha! i! the pers!!e) #a!a$e#e!t )iterat&re1 c!cer!i!$ MNCs9

i#pact!!ati!a) IR s0ste#s1 partic&)ar)0 c))ecti/e 'ar$ai!i!$ a!" (r2%rce

represe!tati! *e,$, &a(a1 56@6? R'erts1 56@+, C!si"era')e atte!ti! (as pai" tthe i#p)icati!s % MNCs9 strate$ic a"/a!ta$es %r &!i! p(er *e,$, ILO1 56@7+,

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H(e/er1 there (as )itt)e ! these aspects % IR %r# a #a!a$eria) perspecti/e1 as

C)ar2 et a), *5666+ !te,

The i#pact % MNCs ! IRh as c!ti!&e" t 'e a #ar stra!" % research1 a)th&$h

!t i! #ai!strea# HR )iterat&re, I! rece!t 0ears1 the IR )iterat&re has e!$a$e" (ith

s&pra!ati!a) "e/e)p#e!ts1 s&ch as the i#pact % the E&rpea! U!i! !e#p)0#e!t re)ati!s i! MNCs %r e4a#p)e1 the (r2i!$s % E&rpea! (r2s

c&!ci)s *e,$, Mar$i!s! a!" Ha))1 88=+1 a!" the e#er$e!ce % crss>!ati!a)

 'ar$ai!i!$ *e,$, Siss!1 887+,   A %&rther stra!" re)ates t e#p)0ee /ice1 !ta')0

the 'a)a!ce 'et(ee! "irect %r#s % #a!a$e#e!te#p)0ee c##&!icati! a!"

i!"irect %r#s thr&$h e#p)0ee represe!tati/es a!" &!i!s *e,$, TKse)#a!! et a),1

88? " a!" Fe!t!>O9Cree/01 88+, IR sch)ars ha/e a)s c!ti!&e" t e4a#i!e

h( (r2 r$a!isati! i! MNCs /aries 'et(ee! "i%%ere!t hst i!stit&ti!a) setti!$s

*e,$, E"(ar"s et a),1 5666? riste!se! a!" eit)i!1 88? Mear"i a!" Tth1 887+1

a$ai! a tpic )ar$e)0 i$!re" i! HRM *c%, C)ar2 et a),1 5666+, O% partic&)ar i!terest has

 'ee! the i!ter!ati!a) "isse#i!ati! % )ea! pr"&cti! a!" ther (r2 r$a!isati!

tech!i3&es '0 apa!ese MNCs *e,$, De"&ssis1 566? De)'ri"$e1 566;? Deri!$er eta),1 88? E)$er a!" S#ith1 88+, Fi!a))01 the i!%)&e!ce % )a'&r csts1 !ati!a) IR

s0ste#s a!" e#p)0#e!t re$&)ati! ! )cati!a) "ecisi!>#a2i!$ '0 MNCs is a!

i#prta!t the#e *e,$, B$!a!! et a),1 88? Tra4)er a!" itech1 888+? it a)s crps

&p ccasi!a))0 i! the #ai!strea# HRM )iterat&re *e,$, C2e1 885+, A! i#prta!t

stra!" % ar$&#e!t c!cer!s -re$i#e>shppi!$. *Streec21 566@+: the e4te!t t (hich

MNCs are a')e t e4p)it )( )a'&r sta!"ar"s i! hst )cati!s t %rce c!cessi!s

%r# #re prtecte" s0ste#s1 a prcess characterise" as the -race t the 'tt#.,

THEMATIC AND CONCE#TUAL CONCERNS

Strate$i% %ontin$en%ies an& IHRM strate$ies

r2 ! IHRM has te!"e" t e4hi'it a series % &!i%0i!$ the#atic a!" c!cept&a)

c!cer!s, O!e % the #st per/asi/e1 %re3&e!t)0 "ra(i!$ ! the (r2 % Bart)ett a!"

Ghsha) *566; *56;6++1 e4p)res the te!si! 'et(ee! the ppsi!$ !ee"s %r $)'a)

cr"i!ati! % acti/ities (ithi! the MNC a!" %r )ca) resp!si/e!ess t the

 partic&)arities % hst -c&)t&res.1 #ar2ets a!" i!stit&ti!s *e,$, B)# et a),1 88? De

Cieri a!" D()i!$1 5666? st/a1 5666? Rse!(ei$ a!" Nhria1 566=? Sch&)er et

a),1 566+, This is s#eti#es e4presse" as the 'a)a!ce 'et(ee! -i!te$rati!. thr&$h

i!ter>&!it )i!2a$es1 a!" -"i%%ere!tiati!. t a))( perati!$ &!its t react t )ca)

e!/ir!#e!ts *Sch&)er et a),1 566+, HR s0ste#s sta%% se)ecti!1 -acc&)t&rati!.1

trai!i!$1 i!ter!ati!a) career #a!a$e#e!t1 etc, are see! as crss>!ati!a) i!te$rati!

#echa!is#s1 partic&)ar)0 i! )ess tra"iti!a) MNCs that re)0 #re ! i!te$rate"

!et(r2s tha! tra"iti!a)1 hierarchica) c##a!">a!">c!tr) str&ct&res,

Re)ate")01 #a!0 sch)ars ha/e #"e))e" the c!ti!$e!cies %aci!$ IHRM "ecisi!>

#a2ers1 %te! &si!$ %ra#e(r2s 'ase" ! the -i!te$rati!.-"i%%ere!tiati!.

"icht#0 *e,$, Sch&)er et a),1 566? Ta0e'1 88+, riters ha/e t0pica))0 "ra(! !

La(re!ce a!" Lrsch9s *567@+ !ti!s % strate$ic c!ti!$e!c0, Factrs as "i/erse as

%ir# sie1 #"e % e!tr01 the !at&re % #ar2ets1 tech!)$01 e#p)0ee characteristics

a!" sta$e % i!ter!ati!a)isati! ha/e 'ee! see! as i#pacti!$ ! strate$ic IHRM

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"ecisi!>#a2i!$ *c%, B&"h(ar a!" De'rah1 88+, S&ch (r2 e#phasises the !ee" %r 

-%it. 'et(ee! IHRM strate$0 a!" the i!ter!a) a!" e4ter!a) e!/ir!#e!ts % the MNC,

A! e4a#p)e % a prescripti/e #"e) 'ase" ! a strate$ic c!ti!$e!c0 apprach is that

% Bir" a!" Beech)er *566+1 i! their st&"0 % apa!ese s&'si"iaries i! the USA, The0

c)assi%0 the e4ter!a) e!/ir!#e!t accr"i!$ t the "e$ree t (hich c#petiti! is)ca) r $)'a), C#petiti/e strate$ies ca! 'e 'ase" ! cst )ea"ership r pr"&ct

"i%%ere!tiati!, The0 ar$&e1 %r e4a#p)e1 that cst )ea"ers (ith hi$h i!ter!ati!a)

i!te$rati! sh&)" a"pt a -&ti)iser. HRM strate$01 i! (hich HR res&rces are

"ep)0e" thr&$h&t the %ir# as e%%icie!t)0 as pssi')e1 (ith a )ea! (r2%rce,

H(e/er1 this strate$0 is )ess e%%ecti/e (here the %ir# has t a"apt t )ca) #ar2ets,

A#!$ the #st (i"e)0 cite" #"e)s is that % D()i!$ a!" "e Cieri *5666? see a)s

Sch&)er et a),1 566+, The0 &t)i!e a series % -e4$e!&s. %actrs1 s&ch as i!"&str0

characteristics a!" !ati!a) c&)t&re1 a!" % -e!"$e!&s. %actrs1 s&ch as

r$a!isati!a) )i%e c0c)e1 str&ct&re1 strate$0 a!" e!tr0 #"e, These shape the strate$ic

r)e % IHRM i! "eter#i!i!$ (hich HR %&!cti!s sh&)" 'e "e/)/e" a!" (hich

ce!tra)ise"1 the )e/e) % res&rces "e/te" t IHRM1 a!" the /era)) HRM apprach,

hi)e s&ch #"e)s &se%&))0 "ra( atte!ti! t the ra!$e % %actrs i#pi!$i!$ !

IHRM1 the0 #a0 'e criticise" %r a rather a'stract a!" static apprach1 the

 pr)i%erati! % c!te4t&a) /aria')es1 a!" the c!cer! (ith the #a!a$e#e!t % se!ir

a!" i!ter!ati!a) #a!a$ers rather tha! the (r2%rce as a (h)e, The0 a)s te!" t 'e

 prescripti/e i! !at&re1 a!" the e/i"e!tia) 'asis %r their prescripti!s is !t a)(a0s

c)ear,

The 'tra(el o) i&eas*

The #st (i"e)0 e4a#i!e" % the %actrs $e!erati!$ -"i%%ere!tiati!. a!" )ca)

resp!si/e!ess is !ati!a) "i%%ere!ce, A %&!"a#e!ta) 3&esti!1 (i"e)0 a""resse" i! the

)iterat&re1 is the !at&re % crss>!ati!a) tra!s%er % HR p)icies a!" practices (ithi!

MNCs1 r t &se Car!ia(s2a a!" er$es9 *5667+ res!a!t phrase1 -the tra/e) %

i"eas., U!"er (hat c!"iti!s a!" (ith (hat rati!a)e "es tra!s%er ta2e p)ace< hat

2i!"s % HR te!" t 'e tra!s%erre" *a!" (hich " !t+< hat are the #echa!is#s

thr&$h (hich HR practices are "isse#i!ate" %r# pare!t t %rei$! a%%i)iates *r /ice

/ersa+< hat happe!s t s&ch practices ! i#p)e#e!tati! i! "i%%ere!t !ati!a)>

i!stit&ti!a) c!te4ts<

The c!"iti!s &!"er (hich practices are tra!s%erre" ca! 'e sai" t rest ! t(%&!"a#e!ta) %actrs: the /a)&e that crprate p)ic0>#a2ers percei/e i! tra!s%er? a!"

the %easi'i)it0 % tra!s%er r t p&t it si#p)01 #ti/e a!" pprt&!it0, Ta0)r et a),

*5667+ "ra( ! the -res&rce>'ase" /ie( % the %ir#. t "e)i!eate -#ti/e. i! ter#s %

the "esire t attai! c#petiti/e a"/a!ta$e thr&$h the "ep)0#e!t % res&rces that

are rare1 /a)&a')e a!" "i%%ic&)t t i#itate, The0 esta')ish a t0p)$0 % IHRM

strate$ies accr"i!$ t (hether %ir#s ha/e a! -e4prti/e.1 -a"apti/e. r -i!te$rati/e.

HR rie!tati!, The %irst see2s t e4prt pare!t>c&!tr0 practices t %rei$! a%%i)iates1

the sec!" t )et )ca) perati!s a"apt t their e!/ir!#e!t1 a!" the thir" t ta2e the

-'est. appraches a!" &se the# t create i!te$rate" (r)">(i"e s0ste#s, I! e4prti/e

a!" i!te$rati/e strate$ies1 se!ir p)ic0>#a2ers see the crss>!ati!a) "isse#i!ati!

% HR practices as a s&rce % i!ter!ati!a) c#petiti/e a"/a!ta$e, Other thi!$s 'ei!$e3&a)1 !e #a0 pre"ict1 as E"(ar"s a!" Rees *887: chapter + ar$&e1 that MNCs

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(hse $)'a) cr"i!ati! is 'ase" ! -sta!"ar"isati!. % perati!s are )i2e)0 t see

a c#petiti/e a"/a!ta$e i! "i%%&si!, C!/erse)01 i! MNCs (ith a! i!ter!ati!a))0

se$#e!te" "i/isi! % )a'&r *e,$, De"&ssis1 566+1 there #a0 'e )itt)e percei/e"

a"/a!ta$e i! "isse#i!ati!$ sta!"ar" $)'a) HR practices t perati!s (hse

%&!cti!1 s2i))s a!" res&rces are 3&ite "i%%ere!t %r# thse % ther parts % the MNC,

I! ter#s % -pprt&!it0.1 Ta0)r et a), *5667+ re%er t the -c!te4t>$e!era)isa'i)it0. %

HR practices1 that is t sa01 the "e$ree t (hich the0 are capa')e % perati!$

e%%ecti/e)0 &tsi"e their ri$i!a) c!te4t, S&ch c!"iti!s #a0 /ar0 accr"i!$ t the

r)e % the s&'si"iar0 (ithi! the (i"er MNC1 a!" t the e#p)0ee $r&p i!/)/e"

the pare!t9s "esire t e4ert crss>!ati!a) c!tr) /er a! e#p)0ee $r&p (i))1 %r

e4a#p)e1 "epe!" ! the e4te!t % c#pa!0>speci%ic specia)ist s2i))s a!" 2!()e"$e

(ithi! the $r&p, Factrs s&ch as #"e % e!tr0 #a0 a)s a%%ect c!te4t>

$e!era)isa'i)it0: -$ree!%ie)". sites #a0 %a/&r tra!s%er 'eca&se there is ! e!tre!che"

-herita$e. % practices capa')e % resisti!$ the i#prtati! % !/e) practices? the

re/erse is tr&e % ac3&ire" -'r(!%ie)". perati!s *e,$, G&est a!" H3&e1 5667+,

There is e4te!si/e )iterat&re e4a#i!i!$ the speci%ic %actrs that &!"er)ie these t(

c!"iti!s *e,$, Deri!$er et a),1 88? E"(ar"s a!" Fer!er1 88? E"(ar"s a!" Rees1

887: chapter ? st/a1 5666+, Nati!a)>i!stit&ti!a) %actrs p)a0 a! i#prta!t r)e,

MNCs are )i2e)0 t "ra( c#petiti/e a"/a!ta$e1 !t #ere)0 %r# c#pa!0>speci%ic

%actrs1 '&t %r# the speci%ic i!stit&ti!s % their pare!t>c&!tr0 '&si!ess s0ste# *c%,

Ha)) a!" Ss2ice1 885? Prter1 5668+, The0 are )i2e)0 t see2 t 'e i!!/atrs a'ra"

i! s&ch areas, I! the %ie)" % HR1 US MNCs ha/e tra"iti!a))0 s&$ht t i!!/ate i!

s&ch areas as pa0#e!t s0ste#s *per%r#a!ce>re)ate" pa01 per%r#a!ce appraisa)1

e3&it0>'ase" pa01 pr"&cti/it0 'ar$ai!i!$1 etc,+ *e,$, B)# et a),1 88? B&c2)e0 a!"

E!"er(ic21 56;+,

A ce!tra) e)e#e!t i! the i!ter!ati!a) c#petiti/e a"/a!ta$e a!" c!te4t>$e!era)is>

a'i)it0 % practices has 'ee! the stat&s % the ri$i!ati!$ '&si!ess s0ste# i! the

-hierarch0. % ec!#ies (ithi! the $)'a) ec!#ic s0ste#, The stre!$th %

"#i!a!t ec!#ies1 s&ch as the USA1 creates a 'e)ie% i! the e%%icac0 % its HR

 practices a!" a "0!a#ic % e#&)ati! that S#ith a!" Mei2si!s *566+ re%er t as

-"#i!a!ce e%%ects.1 %aci)itati!$ tra!s%er, Th&s there is c!si"era')e e/i"e!ce that US

MNCs prpa$ate sta!"ar"ise" i!ter!ati!a) HR practices a!" e4ert c!tr) /er

s&'si"iar0 HR t a $reater e4te!t tha! " MNCs % ther !ati!a)ities *e,$, E"(ar"s et

a),1 88@+,

H(e/er1 c!te4t>$e!era)isa'i)it0 "epe!"s ! the e4te!t t (hich !ati!a)

i!!/ati!s %r e4a#p)e1 i! s2i))s s0ste#s ca! 'e "etache" %r# their "#estic

c!te4t, I% practices re)0 ! "e!se i!ter>re)ati!ships 'et(ee! a ra!$e % sta2eh)"ers

a!" speci%ic i!stit&ti!s1 their a'i)it0 t %&!cti! &tsi"e these setti!$s is 3&esti!a')e,

S&ch ar$&#e!ts ha/e 'ee! #a"e a'&t the Ger#a! -"&a) s0ste#. % /cati!a)

e"&cati! *e,$, Dic2#a!!1 88+ a!" a'&t the apa!ese s0ste# % -)i%eti#e

e#p)0#e!t.*Gi)) a!" !$1 566;+, Tra!s%era'i)it0 )i2e(ise "epe!"s ! the hst9s

recepti/it01 (hich is i!%)&e!ce" '0 the "e$ree % re$&)ati! % HR a!" e#p)0#e!t

iss&es1 the e4iste!ce % apprpriate i!stit&ti!a) s&pprts %r tra!s%erre" practices1 a!"

s !, There ha/e 'ee! atte#pts t assess the -"ista!ce. 'et(ee! "i%%ere!t !ati!a)

setti!$s as a pri#e e4p)a!atr0 %actr i! the tra!s%er % HR practices, riters ha/e&se" the !ti! % -c&)t&ra) "ista!ce. *e,$, i# a!" Gra01 88+ t e4p)ai! the

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 prese!ce r a'se!ce % tra!s%er1 !r#a))0 'ase" ! "i%%ere!ces i! a$$re$ate scres!

H%ste"e9s /a)&e "i#e!si!s *$&t a!" Si!$h1 56;;+, Mre rece!t)01 (riters ha/e

trie" t i!crprate a (i"er ra!$e % !ati!a) "i%%ere!ces thr&$h the c!cept %

-i!stit&ti!a) "ista!ce. *e,$, st/a1 5666? & a!" She!2ar1 88+, st/a has

perati!a)ise" the -c&!tr0 i!stit&ti!a) pr%i)e. t capt&re e)e#e!ts % re$&)atr01

c$!iti/e1 a!" !r#ati/e i!stit&ti!s (ithi! the c&!tr0 % ri$i! a!" the hst c&!tr0respecti/e)0, This has 'ee! app)ie" i! re)ati! t the &se % e4patriates *e,$, Ga&r et

a),1 88@+1 a!" t e4patriate a"&st#e!t *e,$, Ra#se01 88+, O!e pr')e# (ith s&ch

#eas&res is that the i#p)icati!s % "ista!ce are a#'i$&&s1 as i# a!" Gra0 *88+

 pi!t &t: s#e spec&)ate that $reater "ista!ce re"&ces tra!s%er % HR practice1 (hi)e

thers ar$&e that pare!t c#pa!ies9 "esire t c!tr) %r &!certai!t0 i! c&)t&ra))0 r

i!stit&ti!a))0 "ista!t )cati!s )ea"s t $reater tra!s%er i! s&ch cases,

There is a! a'&!"a!ce % )iterat&re "etai)i!$ the 'stac)es t tra!s%er % HR practices

 'et(ee! c&!tries, T&!$ a!" r# *885+1 %r i!sta!ce1 pi!t t the pr')e#s %

ce!tra)ise" c!tr) % %rei$! s&'si"iaries i! Chi!a: s&ch c!tr) i#pe"es atte#pts t

)i!2 i!t the pers!a)ise" !et(r2s *-$&a!4i.+ that t0pi%0 Chi!ese '&si!ess re)ati!s,Si#i)ar)01 Li!" h)#eta), *5666+ %&!" that per%r#a!ce appraisa) s0ste#s tra!s%erre"

t Chi!ese s&'si"iaries c&)" !t %&!cti! as the0 "i" i! the $)'a) c#pa!0: $a)s

ha" t 'e -achie/a')e. 'eca&se % the ris2 % )ss % %ace? there (as )itt)e i!t a$reei!$

% 'ecti/es1 re%)ecti!$ the stre!$th % hierarchica) re)ati!s? a!" it (as "i%%ic&)t t

#a2e "irect criticis# % appraisees,

HR practices ha/e 'ee! assesse" i! re)ati! t their s&scepti'i)it0 t )ca) i!stit&ti!a)

*r c&)t&ra)+ i!%)&e!ces, Fr e4a#p)e1 a! i!ter!ati!a) c!srti&# % sch)ars

*Geri!$er et a),1 88+ i!/esti$ate" (hether there (ere "isti!cti/e cate$ries %

-c!te4t %ree. HR practice1 that is1 -practices thatQ #a0 $e!era))0 'e app)ica')e a!"

e%%ecti/e acrss "i%%ere!t !ati!s1 re$ar")ess % the scieta) a!" r$a!iati!a)

c!te4t&a) c!"iti!s. *p, 7+, I! $e!era)1 %r a $i/e! hst )cati!1 Rse!(ei$ a!"

 Nhria *566=+ s&$$est that practices %r !!>#a!a$eria) sta%% are #re )i2e)0 t 'e

s&'ect t )ca) re$&)atr0 a!" ther c!strai!ts, Other areas % HR1 s&ch as

#a!a$e#e!t "e/e)p#e!t a!" pa0#e!t s0ste#s1 are see! as )ess c!strai!e" a!"

he!ce #re )i2e)0 t 'e s&'ect t the i!%)&e!ce % the MNC9s $)'a) p)ic0

%ra#e(r2s, Si#i)ar)01 Mrt! a!" Sie'ert *885+ %&!" that -)ca) #a!a$ers pssess

3&ite (i"e %ree"# c!cer!i!$ recr&it#e!trete!ti! &tc#es. i! #atche" U a!"

c!ti!e!ta) E&rpea! p)a!ts % MNCs *p, =+, Rse!(ei$ a!" Nhria9s ar$&#e!t

#a0 ha/e 'ee! shape" '0 the %act that the USA (as the hst )cati!1 a!" its

$e!era)isa'i)it0 t ther c!te4ts #a0 'e 3&esti!a')e, Ne/erthe)ess there "es see#t 'e si$!i%ica!t s&pprt %r the !ti! that s#e HRER practices are #re

s&scepti')e tha! thers t crss>!ati!a) tra!s%er, Lar$e>sca)e s&r/e0>'ase" research

! MNCs i! the U *E"(ar"s et a),1 88@+ s&$$ests that hi$her r$a!isati!a) )e/e)s

are )ess )i2e)0 t i!%)&e!ce the c!te!t % s&'si"iar0 p)ic0 ! e#p)0#e!t

represe!tati! tha! ! pa0 a!" per%r#a!ce r #a!a$e#e!t "e/e)p#e!t? iss&es %

e#p)0ee i!/)/e#e!t are i! a! i!ter#e"iate psiti!,

hi)e #st st&"ies %c&s ! HR tra!s%ers '0 the pare!t t %rei$! s&'si"iaries1 the

rise i! i!terest i! MNCs as sites % crss>!ati!a) r$a!isati!a) )ear!i!$ *e,$, Bart)ett

a!" Ghsha)1 566;+1 has $e!erate" i!/esti$ati! % the "irecti! % tra!s%er, I! MNCs

that are i!creasi!$)0 i!te$rate" !et(r2s rather tha! tp>"(! hierarchies1 it is ar$&e"that %)(s % 2!()e"$e i!c)&"i!$ HR practices #a0 prcee" i! a!0 "irecti!1

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i!c)&"i!$ %r# s&'si"iar0 t hea"3&arters, E"(ar"s *566;? E"(ar"s et a),1 88+ has

ar$&e" that s&ch -re/erse "i%%&si!. "epe!"s ! a /ariet0 % c!"iti!s i!ter!a) a!"

e4ter!a) t the %ir#1 s&ch as the "e$ree % i!ter!ati!a) i!te$rati! % the MNC a!"

the p(er re)ati!s 'et(ee! its c!stit&e!t parts,

A! i!!/ati/e apprach t tra!s%er is ta2e! '0 Sch#itt a!" Sa"(s2i *88+1 (he4a#i!e tra!s%er '0 US a!" U MNCs t their s&'si"iaries i! Ger#a!0 i! ter#s % a

#"e) % -%isca) %e"era)is#. 'rr(e" %r# p&')ic p)ic0 "e'ates, Tra!s%er ta2es p)ace

(here !et 'e!e%its % tra!s%erri!$ p)ic0 t the s&'si"iar0 &t(ei$h !et csts %

tra!s%er, The csts % ce!tra))0 "i%%&si!$ p)ic0 i!c)&"e csts % #!itri!$1

/erc#i!$ resista!ce i! the s&'si"iar01 a!" i!%ri!$i!$ )ca) c&st# a!" practice1 i%

!t )e$a) re$&)ati!, The csts % "ece!tra)isati! i!c)&"e the )ss % ec!#ies %

sca)e1 e3&it0 iss&es arisi!$ %r# treati!$ si#i)ar $r&ps % e#p)0ees "i%%ere!t)0 i!

"i%%ere!t c&!tries1 a!" a )ss % c!tr) a!" i!%)&e!ce /er the s&'si"iar0, Sch#itt

a!" Sa"(s2i *88+ s&$$est that i! the areas % c))ecti/e 'ar$ai!i!$ a!" e#p)0ee

represe!tati!1 the Ger#a! s0ste# i#pses csts % ce!tra)iati! %r MNCs that

&t(ei$h csts % "ece!tra)iati!? MNCs there%re a"apt t )ca) practice,

The apprach pr/i"es a %)e4i')e a!" p(er%&) /era)) #"e) that ca! acc##"ate

%actrs s&ch as i!stit&ti!a) "i%%ere!ces as (e)) as p(er re)ati!s (ithi! the MNC

*see 'e)(+, H(e/er1 it is )i#ite" i! that it ass&#es that tra!s%er is a! -either>r.

 prcess, I! %act1 there is c!si"era')e research sh(i!$ that HR practices #a0 'e

tra!s%erre" i! a #"i%ie" %r#1 r &!"er$ -tra!s)ati!. t the !e( c!te4t *c%,

Car!ia(s2a a!" er$es1 5667+, As #e!ti!e" a'/e1 Li!"h)# et a), *5666+ %&!"

e/i"e!ce that !#i!a))0 sta!"ar"ise" per%r#a!ce appraisa) s0ste#s %&!cti!e"

"isti!cti/e)0 i! Chi!ese s&'si"iaries, Si#i)ar)01 e4a#i!i!$ i!!/ati/e (r2i!$

 practices i! the car i!"&str01 Scar'r&$h a!" Terr0 *566;+ reprte" a! -a"aptati!.

#"e) % tra!s%er i! (hich the practice is a"apte" creati/e)0 t )ca) circ&#sta!ces

thr&$h the i!teracti!s % )ca) &!i!s a!" #a!a$e#e!t, Mre ra"ica))01 B0er et a),

*566;+ ar$&e1 ! the 'asis % a st&"0 % (r2 r$a!isati! i! the a&t#ti/e i!"&str01

that tra!s%er i!e/ita')0 i!/)/es -creati/e. h0'ri"isati!1 (here'0 a! ri$i!a) practice

&!"er$es "0!a#ic #"i%icati! i! r"er t (r2 (ithi! a !e( i!stit&ti!a) setti!$,

st/a9s (r2 has thr(! &se%&) )i$ht ! s&ch #"i%icati! prcesses, r2i!$ %r#

a -!e( i!stit&ti!a)ist. perspecti/e she "isti!$&ishes the i#p)e#e!tati! % a

tra!s%erre" practice %r# its -i!ter!a)isati!., The )atter re%ers t the %&)) assi#i)ati!

% the practice t the recipie!t e#p)0ees9 c$!iti/e a!" !r#ati/e %ra#e s

%re%ere!ce *see a)s Sa2a9s *88+ st&"0 % the i!ter!a)isati! % !e( (r2i!$

 practices i! apa!ese s&'si"iaries i! the U+,

U!"erpi!!i!$ c!cepts % HR -h0'ri"isati!. a!" si#i)ar !ti!s are %te! i#p)icit

 perspecti/es ! p(er, I! reacti! t the #"e)s % the crprati! i#p)icit i! #&ch

% the i!ter!ati!a) '&si!ess )iterat&re1 (riters ha/e 'ee! c!cer!e" t characterise the

MNC as the site % i!te!se -#icrp)itics. *e,$, Fer!er a!" E"(ar"s1 566? Geppert

a!" i))ia#s1 887? riste!se! a!" eit)i!1 88+, A 2e0 ar$&#e!t here is that

s&'si"iar0 actrs are %te! a')e t "eri/e p(er res&rces %r# their 2!()e"$e %

a!" e#'e""e"!ess (ithi! the )ca) i!stit&ti!a) c&)t&re, Actrs #a0 i!%)&e!ce (hether 

-i#prte". p)icies are a"pte" (h)esa)e1 pai" )ip ser/ice t1 a"apte"1 h0'ri"ise"1 r

e/e! resiste" a!" reecte" '0 the s&'si"iar0, It sh&)" 'e !te" that )ca) actrs ca!

&se their p(er res&rces t %aci)itate p)ic0 a"pti! rather tha! t ')c2 it, Lca)2!()e"$e a))(s MNCs t e4p)re the -$aps. i! the i!stit&ti!a) c!te4t i! r"er t

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e/a"e c!strai!ts? %r e4a#p)e1 MNCs perati!$ i! the hi$h)0 re$&)ate" Ger#a! IR

c!te4t ha/e 'ee! 'ser/e" t shi%t %r# !e 'ar$ai!i!$ &!it t a!ther i! r"er t

(i! #re pa0 %)e4i'i)it0 *e,$, A)#!" et a),1 887+, As B)# et a), *88: 57+

'ser/e i! re)ati! t i!ter!ati!a) c#pe!sati! p)icies1 -Ma!a$ers i! &r %ca)

r$a!iati!s acte" as pra$#atic e4peri#e!ta)ists: the0 c!%r#e" (he! !ecessar0 t

)ca) c!strai!tsQ1 resiste" (he! %easi')e a!" cra%te" strate$ic resp!ses (he!e/er pssi')e., The tra!s%er % HR p)icies is see!1 i! shrt1 as a! esse!tia))0 political  

 prcess,

The i#p)icati!s % the %re$i!$ ar$&#e!ts %r practice (ithi! MNCs are pr%&!":

i#p)e#e!tati! i!/)/es %ar #re tha! the prpa$ati! % a sta!"ar" i!ter!ati!a)

 p)ic0, O!e 3&esti! c!cer!s the #echa!is#s %r e!s&ri!$ the tra!s%er a!"

i#p)e#e!tati! % p)ic0, A c##!)0 'ser/e" #echa!is# is the s&pp)e#e!tati!

% %r#a) p)ic0 (ith -pers!>'ase". tra!s%er1 re)0i!$ ! the prese!ce % e4patriate

#a!a$ers t "isse#i!ate practice a!" t /ersee a!" #!itr c#p)ia!ce, A!ther

#echa!is# i!/)/es the cpti! % s&'si"iar0 #a!a$ers i!t the p)ic0>%r#&)ati!

 prcess1 s that the0 %ee) the0 ha/e a sta2e i! the e!s&i!$ p)ic0 *e,$, Tre$as2is et a),188+, Fi!a))01 MNC hea"3&arters $e!era))0 ha/e s&rces % p(er at their "ispsa)

(ith (hich t i!/ite r c#pe) c#p)ia!ce, I!ter!ati!a) 'e!ch#ar2i!$ a!" -cerci/e

c#paris!s.1 (ith their e4p)icit r i#p)icit threat % sa!cti!s1 ha/e 'ee! (i"e)0 &se"

t prpa$ate sta!"ar" (r2i!$ practices i! the %ace % )ca) resista!ce *e,$, C))er1

5667? M&e))er a!" P&rce))1 566+, Mre/er1 pers!a) re(ar"s a!" pr#ti!

pprt&!ities % se!ir )ca) #a!a$ers are i! the ha!"s % hi$her>)e/e) "ecisi!>

#a2ers,

THE ROLE OF THE HR FUNCTION IN

MULTINATIONALS

The r$a!isati!a) cha))e!$es % #a!a$i!$ crss>!ati!a) (r2 %rces i! e/)/i!$

circ&#sta!ces a!" acrss /arie" !ati!a) c!te4ts are ce!tra) t 'th practiti!er a!"

aca"e#ic c!cer!s, As !te" a'/e1 the )i!2 'et(ee! IHRM a!" '&si!ess strate$0 has

 'ee! a precc&pati! % prescripti/e #"e)>'&i)"i!$ i! the %ie)" *e,$, A")er a!"

Gha"ar1 5668? Per)#&tter1 5676+, Sc&))i! a!" Star2e09s st&"0 *888+ % 8 U

MNCs i"e!ti%ie" a! e#er$i!$ crprate HR a$e!"a %c&si!$ ! se!ir #a!a$e#e!t

"e/e)p#e!t1 s&ccessi! p)a!!i!$1 a!" "e/e)pi!$ a ca"re % i!ter!ati!a) #a!a$ers,

Others ha/e pi!te" t a r)e i! setti!$ strate$ic per%r#a!ce a!" re(ar" %ra#e(r2s

*e,$, E/a!s a!" Lra!$e1 56;6+, Mre rece!t)01 (riters ha/e 'ee! c!cer!e" a'&t ther)e % the HR %&!cti! i! the "e/e)p#e!t % &!i3&e %ir# res&rces as a s&rce %

c#petiti/e a"/a!ta$e *e,$, Ta0)r et a), 5667+, This has )e" t e4p)rati! % HR9s

c!tri'&ti! t 2!()e"$e !et(r2i!$ *Tre$as2is et a),1 88+ a!" the '&i)"i!$ %

scia) capita) *Ta0)r1 887+,

B&t1 c&ri&s)0 perhaps1 the str&ct&ra) %r# % the IHRM %&!cti! has 'ee! s#e(hat

!e$)ecte" '0 researchers *Sc&))i! a!" Star2e01 888+, Re)ati/e)0 )itt)e (r2 has 'ee!

c!"&cte" ! the str&ct&ra) e/)&ti! % the HRM %&!cti! i! resp!se t s&ch

cha!$es i! MNC str&ct&re as: the "e/e)p#e!t % "iscrete i!ter!ati!a) '&si!esses

(ith c!si"era')e '&si!ess a&t!#0 (ithi! the $)'a) MNC? the e/)&ti! %

s&pra!ati!a) re$i!a) str&ct&res1 part)0 re%)ecti!$ the c!s)i"ati! % re$i!a)

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#ar2ets s&ch as the EU a!" NAFTA? a!" the i#prta!ce % #atri4 %r#s1 &s&a))0

c#'i!i!$ '&si!ess>"i/isi! a!" $e$raphica) str&ct&res *Mar$i!s! et a),1 566+,

E/i"e!ce s&$$ests that the #"e % r$a!isi!$ the HR %&!cti! /aries c!si"era')0

 'et(ee! MNCs % "i%%ere!t !ati!a) ri$i! *E"(ar"s et a),1 88@? Fer!er a!" Var&)1

888? chter et a),1 887+, A )ar$e>sca)e represe!tati/e s&r/e0 % MNCs i! the U*E"(ar"s et a),1 88@+ %&!" that the "e$ree % ce!tra)isati! % HR p)ic0>#a2i!$1

the e4te!t % hi$her>)e/e) scr&ti!0 % s&'si"iar0 HR #etrics1 a!" the &se %

-tech!)$ies. % IHRM s&ch as $)'a) e)ectr!ic i!%r#ati! #a!a$e#e!t s0ste#s

%r HR *HRIS+1 a)) /arie", Fr e4a#p)e1 th&$h s&'si"iaries $e!era))0 ha/e a

re)ati/e)0 hi$h "e$ree % "iscreti! /er the %r#&)ati! % their HR p)icies1

s&'si"iaries % A#erica! MNCs ha/e s0ste#atica))0 )ess "iscreti! ! a ra!$e % HR

iss&es tha! %ir#s % ther !ati!a)ities, The0 are %ar #re )i2e)0 tha! thers t ha/e

i!ter!ati!a) HRIS1 s&$$esti!$ that the a/ai)a'i)it0 % the -tech!)$0. #a0 'e a %actr 

i! ce!tra)ise" c!tr),

There appear t 'e a !&#'er % tre!"s i! h( the %&!cti! is e/)/i!$, First1 the )c&s% HR capa'i)it0 a'/e s&'si"iar0 )e/e) is cha!$i!$ (ith the i!creasi!$ &se %

re$i!a)> a!" '&si!ess>'ase" i!ter!ati!a) r$a!isati!a) str&ct&res, Sec!"1 #re

%)&i"1 i!%r#a) #echa!is#s % HR cr"i!ati! appear t 'e $r(i!$ i! i#prta!ce,

This ca! 'e re)ate" t the rise i! the -i!te$rate" !et(r2. #"e) % MNCs i! (hich

e4pertise is "isse#i!ate" thr&$h&t the %ir#9s perati!s rather tha! 'ei!$

#!p)ise" '0 hea"3&arters, As a res&)t1 the i"e!ti%icati! a!" "i%%&si! %

2!()e"$e a!" practice i! the HR %ie)" has 'ec#e % i!creasi!$ i#prta!ce %r

c#petiti/e a"/a!ta$e *e,$, Ta0)r1 887+, Thir"1 !e( tech!)$ies ha/e e!a')e" a

/ariet0 % "e/e)p#e!ts that are &se" t "ri/e cst e%%icie!cies a!" e!ha!ce ce!tra)

/ersi$ht % HR acrss $)'a) perati!s *Sparr(eta),1 88=: chapter =+, These

i!c)&"e HRIS 'ase" ! sta!"ar" s%t(are pr$ra##es a))(i!$ MNCs t #!itr

a!" "ep)0 pers!!e) %r c#petiti/e a"/a!ta$e *Ha!!! et a),1 5667+, A re)ate"

"e/e)p#e!t is i!creasi!$ &se % crprate i!tra!ets t "e)i/er $)'a) HR ser/ices t

i!ter!a) -c&st#ers. *e,$, R&ta1 88+,

Tech!)$0 has a)s "ri/e! the -ta0)ri>sati!. % HRM perati!s at re$i!a) r

$)'a) )e/e) '0 a))(i!$ the separati! % r&ti!e1 repetiti/e a!" prce"&ra) (r2

%r# the #re strate$ic (r2 % HR e4ec&ti/es, R&ti!e (r2 #a0 'e "e)e$ate" t

HR -share" ser/ice ce!tres.1 %te! (r2i!$ re#te)0 thr&$h ca)) ce!tre perati!s

ser/i!$ a ra!$e % s&'si"iar0 perati!s i! "i%%ere!t c&!tries, A si$!i%ica!t

 prprti! % MNCs &p t ha)% % )ar$e MNCs appear t #a2e &se % s&chi!ter!ati!a) HR ser/ice ce!tres *E"(ar"s et a),1 88@+, A! e4a#p)e is IBM9s )cati!

% its i!ter!ati!a) share" ser/ices ce!tre1 i!c)&"i!$ HR acti/it01 i! B&"apest i! the

ear)0 888s, Mre/er1 s&ch -%%>shri!$. % HR acti/ities has s#eti#es 'ee!

acc#pa!ie" '0 &ts&rci!$ as specia)ist -BPO. *'&si!ess prcess &ts&rci!$+ %ir#s

ta2e /er resp!si'i)it0 %r %%>shre" HR a!" ther '&si!ess %&!cti!s *e,$,

H%%#a!!1 88+, This e/)&ti! re%)ects the cha))e!$e i!/)/e" i! #ai!tai!i!$

specia)ist share" ser/ice ce!tre s2i))s1 a!" the hi$h tech!)$ica) i!%rastr&ct&re csts

i!c&rre" *i"#a!1 88+, H(e/er1 s&ch e#er$i!$ tre!"s ha/e !t 0et 'ee! s&'ect t

s&stai!e" aca"e#ic a!a)0sis,

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METHODOLOGICAL A##ROACHES TO THE

STUD OF IHRM

Ir!ica))01 i! /ie( % the "#i!a!ce % the -c&)t&ra) /a)&es. para"i$# %r# the 56;8s1

#&ch (r2 ! IHRM is -US>ce!tric. *see Bre(ster a!" Harris1 5666+1 carrie" &t-%r# a! A#erica! perspecti/e1 per%r#e" '0 A#erica! *r A#erica!>trai!e"+

researchers1 a!" #st)0 "!e i! the tp i!"&stria)ie" r "e/e)pe" c&!tries. *Brisce

a!" Sch&)er1 88=: 55+, C)ar2 et a), *5666: 7+ cate$rise ar&!" three>3&arters %

the IHRM research &tp&ts the0 e4a#i!e" as 'ei!$ -eth!ce!tric. i! !at&re1 that is t

sa01 "esi$!e" '0 researchers i! !e c&)t&re a!" s&'se3&e!t)0 rep)icate" i! a!ther

c&)t&re, The re#ai!i!$ st&"ies &se" #re )ca))0 rte" %ra#e(r2s % i!terpretati!

a!" e4p)a!ati!? r (ere c#parati/e i! the se!se % tr0i!$ t i"e!ti%0 'th

&!i/ersa)ist a!" c&)t&ra))0 speci%ic e)e#e!ts, The si$!i%ica!ce % this )ies i! "&'ts as

t (hether researchers ha/e 'ee! care%&) e!&$h t i"e!ti%0 -%&!cti!a) e3&i/a)e!ce.

i! tra!s)ati!$ c!cepts "e/e)pe" (ithi! !e !ati!a) '&si!ess c!te4t t ther

c&!tries *p, 5+,

S&r/e0s a!" case st&"ies ha/e 'ee! the pre"#i!a!t #eth"s i! IHRM research,

C)ar2 et a), *5666: 7@+ %&!" that =5 per ce!t % IHRM artic)es i"e!ti%ie" &se"

s&r/e0s1 a!" @ per ce!t case st&"ies, S&r/e0s ha/e 'ee! &se" i! a (i"e ra!$e %

$e$raphica) setti!$s, H(e/er1 "ra(i!$ &p a represe!tati/e sa#p)e % MNCs ! the

 'asis % a! acc&rate pp&)ati! )isti!$ is 'eset (ith "i%%ic&)ties % "e%i!iti! a!" "ata

acc&rac0 *e,$, E"(ar"s1 T, et a),1 88@? R&$#a!1 88+,

Less c##!)01 e4isti!$ "ata %r# p&')ishe"1 !ta')0 $/er!#e!ta)1 s&rces ha/e

 'ee! &se"? a! e4a#p)e is the (r2 % B$!a!! et a), *88+ e4a#i!i!$ the i!%)&e!ce

% (a$es a!" IR e!/ir!#e!ts ! the i!/est#e!t "ecisi!s % US MNCs1 &si!$

s&r/e0s % US "irect i!/est#e!t a'ra" c!"&cte" '0 the US B&rea& % Ec!#ic

A!a)0sis, S&r/e0 (r2 has a)s "ra(! ! e4isti!$ aca"e#ic "atasets1 as i! st&"ies

 'ase" ! c#pa!0>)e/e) a!" (r2p)ace e#p)0#e!t re)ati!s s&r/e0s i! the U *e,$,

Mar$i!s!s et a),1 566+1 Ire)a!" *e,$, Gear0 a!" Rche1 885+1 a!" A&stra)ia *a)sh1

885+, Other (r2 *e,$, Fe!t!>O9Cree/0 et a),1 88;+ "ra(s ! the Cra!et crss>

!ati!a) s&r/e0 % HRM i! a ra!$e % c#pa!ies, S&ch (r2 has te!"e" t 'e )i#ite"

 '0 the %act that the ri$i!a) s&r/e0s (ere !t "esi$!e" as st&"ies % MNCs,

Partic&)ar)0 pr')e#atic are atte#pts t c#pare pp&)ati!s % MNCs perati!$ i!

"i%%ere!t hsts, Iss&es % %&!cti!a) e3&i/a)e!ce )# )ar$e1 c#p&!"i!$ "i%%ic&)ties% st&"0i!$ si!$)e>c&!tr0 MNC pp&)ati!s1 a!" "ata c))ecti! #eth"s apprpriate

%r research i! !e !ati!a) c!te4t #a0 !t (r2 i! a!ther, Psta) s&r/e0s are (e))

accepte" as a #"e % "ata c))ecti! i! the USA r Ca!a"a1 '&t pr)0 accepte" i!

c&!tries s&ch as Me4ic (here pers!a) c!tacts are #re si$!i%ica!t *Geri!$er et

a),1 88+, The st&"0 '0 Geri!$eret a),1 reprte" i!aspecia) iss&e % Human Resource

 Management 1 p&rprts t 'e a'&t the i"e!ti%icati! % -'est. i!ter!ati!a) HRM

 practices1 '&t is i! %act a crss>!ati!a) c#parati/e a!a)0sis % HR practices &si!$

(i"e)0 "i%%eri!$ "ata c))ecti! #eth"s a!"1 cr&cia))01 &!its % a!a)0sis i! the

"i%%ere!t c&!tries s&r/e0e", Fr e4a#p)e1 the sa#p)e % #a!a$eria) resp!"e!ts i!

apa! ca#e %r# a #ere three r$a!isati!s, Nati!a) s&r/e0s /arie" i! the i!c)&si!

r e4c)&si! % p&')ic sectr r$a!isati!s1 sectra) c/era$e1 a!" %ir# sie, It is har"t see (hat 2i!" % c#parati/e se!se #a0 'e #a"e % s&ch heter$e!e&s "atasets1

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 partic&)ar)0 i! research ! c#parati/e 'eha/i&r % pp&)ati!s % MNCs i!

"i%%ere!t c&!tries, Fr s&ch reas!s1 there appear t 'e %e( c#parati/e s&r/e0s %

 pp&)ati!s % MNCs i! "i%%ere!t c&!tries,  

Part)0 as a res&)t % the 'ias t(ar"s s&r/e0s1 #st (r2 is crss>secti!a): !)0 7 per

ce!t % the (r2s st&"ie" '0 C)ar2 et a), *5666+ &se" )!$it&"i!a) #eth"s, Casest&"ies ha/e /arie" (i"e)0 i! a#'iti! a!" %c&s, hi)e #a!0 restrict the#se)/es t

!e hst e!/ir!#e!t1 thers c#pare MNCs acrss t( r #re hsts *e,$, A)#!"

et a),1 88? Geppert et a),1 88? Mear"i a!" Tth1 887? &i!ta!i))a1 88+, I! s#e

i!sta!ces1 rich)0 "etai)e" case st&"ies % si!$)e e!terprises c!"&cte" /er a peri" %

0ears ha/e capt&re" the e/)&ti! % IHRM, T( pr#i!e!t e4a#p)es1 (hse

c!cer!s ra!$e %ar (i"er tha! HRM1 are B)a!$er et a),9s *5666+ st&"0 % ABB acrss

se/era) c&!tries i! Asia1 E&rpe a!" Nrth A#erica? a!" riste!se! a!" eit)i!9s

*88+ "issecti! % the U #&)ti!ati!a)1 APV1 i! Britai!1 De!#ar2 a!" the USA,

hat is !ta')e a'&t these st&"ies1 a!" rather e4cepti!a) i! the )iterat&re1 is that

the0 e4p)re #&)tip)e r$a!isati!a) )e/e)s1 rather tha! restricti!$ the#se)/es either t

a s&'si"iar0 r a! H perspecti/e,

Geo$raphi%al %on%entration o) stu&ies

O'ser/ers ha/e c##e!te" ! the c!ce!trati! % st&"ies ! re)ati/e)0 %e(

c&!tries, C)ar2 et a), *5666: 7+ %&!" that -the U1 US1 apa!1 Fra!ce a!"

Ger#a!0 (ere the #st %re3&e!t)0 st&"ie" c&!tries1 acc&!ti!$ %r =; per ce!t % a))

cases., Be0!" these1 a re)ati/e)0 s#a)) $r&p % c&!tries %eat&re" str!$)01 i!c)&"i!$

A&stra)ia1 Si!$apre a!" Ma)a0sia i! Asia1 S(e"e!1 the Nether)a!"s a!" Spai! i!

E&rpe1 a!" Ca!a"a a!" Me4ic i! Nrth A#erica, It (as !t &!c##! %r st&"ies

t )&#p t$ether c#pa!ies %r# a "isparate ra!$e % E&rpea! c&!tries i!t !e-E&rpea!. cate$r0 *e,$, pp1 566=+,

Mre rece!t (r2 has sh(! si$!s % a shi%t i! $e$raphica) e#phasis: Chi!a9s

ec!#ic "e/e)p#e!t has sti#&)ate" a rapi")0 i!creasi!$ /)&#e % research !

HRM i! the s&'si"iaries % %rei$! %ir#s a!" i! i!t /e!t&res *e,$, BJr2#a! a!" L&1

885? Ga#')e1 88? G"a)) a!" ar!er1 566@? T&!$ a!" r#1 885+? Chi!a a)s

%i$&res pr#i!e!t)0 i! rece!t IHRM te4ts a!" pe"a$$ic case st&"ies *e,$, BJr2#a!

a!" Ga)&!ic1 88=? ha!$ et a),1 887+, The c))apse % the S/iet ')c has a)s

 pr/i"e" i#pet&s t st&"ies % MNCs9 s&'si"iaries i! easter! E&rpe a!" *t a )esser

e4te!t+ i! R&ssia, The#es ha/e i!c)&"e" %ir# re)cati! a!" re$i#e>shppi!$1

 partic&)ar)0 '0 Ger#a! MNCs1 a!" the tra!s%era'i)it0 % HR practices t thei!stit&ti!a) c!te4ts % these e#er$i!$ states *e,$, B)&h#1 885? aha!c/ a!" /a!

"er Meer1 887? Mear"i a!" Tth1 887+, Mar $aps re#ai!1 h(e/er, Despite I!"ia9s

e#er$i!$ stat&s1 re)ati/e)0 )itt)e research has 'ee! c!"&cte" ! MNCs perati!$

there,

Gi/e! the c!ce!trati! % MNCs i! the "e/e)pe" (r)"1 it is &!s&rprisi!$ that the

%c&s is sti)) ! a !arr( ra!$e % parent  c&!tries: the USA1 Ger#a!01 apa!1 a!" the

U, MNCs 'ase" i! ther E&rpea! c&!tries1 i!c)&"i!$ Fra!ce1 Fi!)a!"1 S(e"e!

a!" the Nether)a!"s1 ha/e 'ee! the s&'ect % ccasi!a) st&"01 as ha/e %ir#s %r#

e#er$i!$ c&!tries s&ch as Chi!a *e,$, She!1 887+,

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CONCLUSIONS+ FUTURE DIRECTIONS IN

INTERNATIONAL HUMAN RESOURCE

MANAGEMENT

De/e)p#e!ts i! the %ie)" % IHRM /er the past t( t three "eca"es #a0 'e

s&##arise" as %))(s, First1 %r #&ch % the peri"1 the c!cept&a) e#phasis has

 'ee! ! &!"ersta!"i!$ -c&)t&ra). "i%%ere!ces 'et(ee! the hst a!" pare!t )cati!s %

the MNC1 a!" the 'arriers a!" pprt&!ities these prese!t %r the crss>!ati!a)

tra!s%er % HR p)icies, C&)t&ra) "i%%ere!ce has 'ee! c!cei/e" i! ter#s % c&)t&ra)

/a)&es1 a)th&$h #re rece!t)0 a #re sphisticate" c#parati/e i!stit&ti!a)ist

 perspecti/e has e!riche" the %ie)",

Sec!"1 there has 'ee! a precc&pati! (ith #"e))i!$ the e4ter!a) e!/ir!#e!ta)

a!" i!ter!a) r$a!isati!a) "eter#i!a!ts % IHRM strate$0 a!" practice1 a!" (ith the

re)ati!ship 'et(ee! IHRM a!" 'ra"er '&si!ess strate$0 as the )atter has e/)/e" i!resp!se t !e( tech!)$ies a!" the i!te!si%icati! % i!ter!ati!a) c#petiti!,

Thir"1 the s&'sta!ti/e %c&s has 'ee! rather !arr(, E4patriates a!" their i!ter!ati!a)

assi$!#e!ts ha/e a'sr'e" #&ch % the e!er$0 % researchers, The stap)e iss&es %

HR ha/e 'ee! st&"ie"1 !ta')0 pa0 a!" per%r#a!ce #a!a$e#e!t1 a!" %te! %r#

a! -i!"&stria) re)ati!s. a!a)0tica) perspecti/e e#p)0ee i!/)/e#e!t1 (r2%rce

represe!tati!1 a!" (r2 r$a!isati!, O! the (h)e1 the e#phasis has 'ee! !

#a!a$eria) rather tha! -ra!2>a!">%i)e e#p)0ees, The cha!$i!$ str&ct&re a!" r)e %

the IHRM %&!cti! has recei/e" rather )ess atte!ti! tha! #i$ht ha/e 'ee! e4pecte",

F&rth1 #eth")$0 has &se" 'th case st&"0 a!" s&r/e0 #eth"s e4te!si/e)01 '&tthe )atter ha/e pre"#i!ate"1 as has a crss>secti!a) apprach, O!)0 rare)0 ha/e

st&"ies $i/e! e3&a) (ei$ht t 'th the s&'si"iar0 )e/e) a!" t crprate hea"3&arters

(ithi! a %ir#? rarer sti)) ha/e st&"ies i!/esti$ate" i!ter#e"iate str&ct&res s&ch as

$)'a) '&si!ess "i/isi!s1 $e$raphica) re$i!s1 r $)'a) '&si!ess %&!cti!s %r# a!

HR perspecti/e *c%, C)ar2 et a),1 5666: 5+, Ge$raphica))01 the ra!$e % st&"ies has

 'ee! )i#ite"1 (ith "isprprti!ate c!ce!trati! ! a s#a)) $r&p % c&!tries1 'th

as pare!ts a!" as hsts,

This 'rie% s&##ar0 % the #ai! %eat&res % (r2 i! the area s&$$ests a !&#'er %

a/e!&es %r %&t&re research, Conceptually1 researchers !ee" t "e/e)p i!creasi!$)0

sphisticate" &!"ersta!"i!$s % the /aria')es that "i%%ere!tiate !e hst c&!tr0 %r#a!ther i! ter#s % HR practice a!" c!strai!ts, S&ch %actrs are )i2e)0 t /ar0 (ith

the HR iss&e a!" (ith the e#p)0ee $r&p 'ei!$ c!si"ere", M&ch rece!t (r2i!

c#parati/e i!stit&ti!a) ther0 *e,$, De)ic a!" &ac21 88+ is c!cer!e" (ith h(

MNCs as i!stit&ti!a) actrs shape their i!stit&ti!a) e!/ir!#e!t1 rather tha! 'ei!$

 passi/e)0 shape" '0 it, This is a partic&)ar)0 i#prta!t c!cer! %r researchers1 a!"

 practiti!ers1 i! c&!tries (here MNCs "#i!ate the ec!#0? a /i$r&s "e'ate i!

Ire)a!"1 %r e4a#p)e1 has e4a#i!e" the e4te!t t (hich MNCs ha/e i!%)&e!ce" the

Irish e#p)0#e!t re)ati!s a$e!"a rather tha! 'ei!$ c!strai!e" t a"apt t it *Gear0

a!" Rche1 885? G&!!i$)e et a),1 887+, Si#i)ar)01 (r2 has )2e" at the i#pact %

MNCs ! the Ger#a! i!stit&ti!a) %ra#e(r2 *e,$, Sch#itt1 88? i))ia#s a!"

Geppert1 887+,

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Part)0 as a res&)t % the acti!s % MNCs1 !ati!a)>i!stit&ti!a) e!/ir!#e!ts %r HR

 p)ic0 a!" practice are "0!a#ic a!" e/)/i!$, Mre/er1 the !ati!a) )e/e) %

re$&)ati! is !t the !)0 !e that i#pacts ! MNCs, T (hat e4te!t is the crss>

 'r"er #a!a$e#e!t % HR shape" '0 e!$a$e#e!t (ith i!stit&ti!s a!" i!stit&ti!a)

actrs 'e)( !ati!a) )e/e) e,$, at the )e/e) % the s&'>!ati!a) re$i! r )ca)it0 i!

(hich a! MNC9s perati!s are )cate"1 i! re)ati! t s&ch iss&es as s2i))s s&pp)0 re#p)0ee represe!tati!< H( %ar1 t1 is IHRM shape" '0 MNCs. e!$a$e#e!t (ith

i!stit&ti!s at s&pra>!ati!a)1 e,$, EU1 )e/e)<

Re)ate" t the c!cept&a)isati! % MNCs as actrs (ithi! i!stit&ti!s is the 3&esti!

% p(er, H( #a0 iss&es % r$a!isati!a) p(er 'e ta2e! i!t acc&!t i! the

a!a)0sis % IHRM< P(er a!" a -p)itica). perspecti/e 'th at #acr> a!" #icr>

)e/e)s are %te! c&ri&s)0 a'se!t %r# "isc&ssi! % crprati!s that are a#!$ the

#st p(er%&) actrs i! the $)'a) ec!#0, Despite a $r(th % i!terest i! rece!t

0ears1 there is re)ati/e)0 )itt)e ! the (a0 i! (hich the crprati! "ep)0s p(er

res&rces t shape its HR i!stit&ti!a) e!/ir!#e!t at the #acr )e/e) %r e4a#p)e1

 '0 i!%)&e!ci!$ the %ra#e(r2 % )a'&r re$&)ati! r the ter#s ! (hich it is app)ie", Nr is #&ch 2!(! a'&t h( the crss>!ati!a) tra!s%er % HR practices is

c!strai!e" '0 the p(er a!" i!terests % a ra!$e % actrs at "i%%ere!t )e/e)s (ithi!

the MNC, Bri!$i!$ p(er a!" p)itics i!t the a!a)0sis #a0 a)s pr/i"e a!

pprt&!it0 t rei!te$rate c&)t&ra) -/a)&es. !t as s#e i"ea)ist1 "ise#'"ie"

c&)t&ra) e#a!ati!1 '&t as part % the c!teste" i!stit&ti!a) terrai! that MNCs i!ha'it,

The substance % IHRM research c&)" 'e e4pa!"e" i! a !&#'er % (a0s, First a!"

%re#st1 the %c&s ! #a!a$eria) sta%% c&)" 'e (i"e!e" t i!c)&"e !!>#a!a$eria)

e#p)0ees, As Mar$i!s! et a), *566: @8+ reprt %r# their s&r/e01 it is stri2i!$ t

'ser/e the e4te!t t (hich -MNCs are acti/e)0 e!$a$e" i! the #a!a$e#e!t % !!>

#a!a$eria) e#p)0ees at i!ter!ati!a) )e/e)., MNCs r&ti!e)0 c))ect i!%r#ati!

i!ter!ati!a))0 ! the pa01 pr"&cti/it01 trai!i!$1 eth!ic "i/ersit01 a!" (r2 attit&"es

% these e#p)0ees *E"(ar"s et a),1 88@+, O!e aspect % the iss&e is h( e#p)0ees

resp!" t IHRM i!itiati/es, ith %e( e4cepti!s1 this is a !e$)ecte" tpic i! the

)iterat&re1 "espite its i!creasi!$ i#prta!ce i! re)ati! t the -tra/e) % i"eas.1 a!" t

the -i!ter!a)isati!. % i!ter!ati!a))0 "i%%&se" practices *st/a1 5666? Sa2a1 88+,

H(1 i! shrt1 are e#p)0ees a%%ecte" '0 the p)icies t (hich the0 are s&'ect1 a!"

h( " the0 percei/e the#<

A sec!" s&'sta!ti/e area % i!/esti$ati! is1 as #e!ti!e" a'/e1 the e/)/i!$ !at&re

% the IHRM %&!cti! itse)%, This see#s pte!tia))0 %r&it%&)1 'th %r its practica)ra#i%icati!s a!" %r the )i$ht it ca! she" ! the re)ati!ship 'et(ee! str&ct&re a!"

strate$0 % the %&!cti!, The !$i!$ search %r a strate$ic r)e is i!ti#ate)0 '&!" &p

(ith the -i!ter!ati!a)isati!. % the p&rs&it % r$a!isati!a) e%%icie!cies (ithi! the

%&!cti!1 !ta')0 thr&$h the i!creasi!$1 a!" i!ter!ati!a))0 str&ct&re"1 separati! %

r&ti!e %r# -hi$her>)e/e). HR prcesses i! MNCs,

Thir"1 (hi)e IHRM has ta2e! ! 'ar" the i#prta!ce % i!ter!ati!a) i!t /e!t&res

as a! r$a!isati!a) %r#1 a!" has c!si"ere" iss&es % %%>shri!$ a!" &ts&rci!$1 it

has 'ee! )ess pr#pt t re%)ect i! s&ch (r2 the theretica) "e/e)p#e!ts % the

$)'a) /a)&e chai! )iterat&re *c%, C)ar2 et a),1 5666: 5+ that1 i#p)icit)01 3&esti!s the

re)e/a!ce % r$a!isati!a) '&!"aries %r &!"ersta!"i!$ the crss>!ati!a)str&ct&ri!$ % h&#a! res&rces, S#e (r2 a)rea"0 e4ists i! this area a!" sh(s the

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 pte!tia) %r "e/e)p#e!t, Fr e4a#p)e1 La!e a!" Pr'ert *887+ ha/e i!/esti$ate"

the !ati!a) "i%%ere!tiati! % )a'&r #a!a$e#e!t a!" the str&ct&ri!$ % s2i))s (ithi!

$)'a) s&pp)0 chai!s i! the c)thi!$ i!"&str0 *see a)s Bair a!" Ra#sa01 88?

Fre!2e)1 885+, ith the c!ti!&i!$ e/)&ti! % %r#s % crss>!ati!a) pr"&cti!

!et(r2s1 s&ch research see#s )i2e)0 t 'ec#e % i!creasi!$ i#prta!ce,

Fi!a))01 methodologically1 there are a !&#'er % cha))e!$es, First1 $"1 "etai)e"

)!$it&"i!a) st&"ies are rare, I! a %ie)" e/)/i!$ s rapi")0 a!" "0!a#ica))0 as IHRM1

s&ch st&"ies % 2e0 cases are !ee"e" t #ap the e/)&ti!1 a!" t trace the )i!2a$es

 'et(ee! c!te4t&a) "ri/i!$ %rces a!" IHRM prcesses a!" practices, Case st&"ies

re#ai! a 2e0 #eth" % accessi!$ the s&'t)e a!" c#p)e4 prcesses &!"er)0i!$ the

#a!a$e#e!t % IHRM, There are partic&)ar pr')e#s i! researchi!$ cate$ries %

cases % c!si"era')e practica) a!" theretica) i!terest %r e4a#p)e1 -)( ra". %ir#s

(hse IHRM is pre#ise" ! )(>s2i)) a!" )(>cst strate$ies, Sec!"1 s&r/e0s ha/e

 'ee! the "#i!a!t #eth" i! the %ie)"1 '&t there are c!si"era')e "i%%ic&)ties i!

i"e!ti%0i!$ r'&st pp&)ati!s %r# (hich t "ra( re)ia')e represe!tati/e sa#p)es,

Mre/er1 s&r/e0s ha/e te!"e" !t t $e!erate )ar$e c#parati/e "atasets1 a))(i!$the s0ste#atic a!a)0sis % the IHRM practices % MNCs i! "i%%ere!t srts % hst

e!/ir!#e!ts, Thir"1 the /ariet0 % #eth"s "ep)0e" i! the %ie)" % IHRM has 'ee!

re)ati/e)0 restricte", A ra!$e % i!!/ati/e #eth"s #i$ht pr/e %r&it%&), Fr e4a#p)e1

%r#a) !et(r2 a!a)0sis *e,$, G&)"1 88+ #i$ht 'e &se" t trac2 career #/es %

i!ter!ati!a) #a!a$ers1 p(er a!" i!%)&e!ce %)(s (ithi! the i!ter!ati!a) HR

%&!cti!1 r crss>!ati!a) )ear!i!$ !et(r2s, S&ch #eth"s c&)" (e)) reach aspects

% IHRM &!'ser/a')e thr&$h #re c!/e!ti!a) #ea!s, Fi!a))01 the ra!$e %

$e$raphies c/ere" '0 research has 'ee! )i#ite"1 a!" c&)" &se%&))0 'e e4pa!"e",

Mre sphisticate" &!"ersta!"i!$ % the i!stit&ti!a) "0!a#ics % a (i"er ra!$e %

MNC hsts is re3&ire"1 'th a#!$ "e/e)pe" a!" "e/e)pi!$ c&!tries, The )atter

are a)s i!creasi!$)0 the s&rce % e#er$i!$ MNCs that #erit st&"0 i! their (! ri$ht,

NOTES

5 It sh&)" 'e !te" that the 'ra"er st&"0 % IHRM $es 'e0!" the #&)ti!ati!a)

c#pa!ies (ith (hich this chapter is pri#ari)0 c!cer!e": it i!c)&"es1 %r e4a#p)e1

 '"ies s&ch as the U!ite" Nati!s1 r i!ter!ati!a) charities,

The esta')ish#e!t % the European Journal of Industrial Relations i! 566 pr/i"e"

a!ther &t)et %r s&ch (r2,

A! e4cepti!1 c&rre!t)0 i! pr$ress1 is (r2 '0 a c!srti&# % researchers i! the

U1 Ca!a"a1 Ire)a!"1 Spai!1 Me4ic a!" A&stra)ia &si!$ a c##! cre i!str&#e!t t

research HR i! pp&)ati!s % MNCs i! the respecti/e c&!tries *E"(ar"s et a),1

88@? M&rra0 et a),1 887+,

F&rther Rea"i!$s 

Entry Citation+

8/9/2019 10.Ferner, Anthony. HRM in Multinational Companies

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Fer!er1 A!th!0, HRM i! M&)ti!ati!a) C#pa!ies, The !"E Handboo# of

 Human Resource Management , 886, SAGE P&')icati!s, 5 Apr, 858,

Whttp:(((,sa$e>ere%ere!ce,c#h"'2Xh&#a!res&rce#$#tArtic)eX!,ht#),

Chapter DOI: 58,=56@;>5>;@8>5=6>,!