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Interplay of Strategic and Institutional Factors in the Process of Transfer of Human Resource Management Practices in MNCs

DOI: 10.4236/jhrss.2023.111003, PP. 32-50

Keywords: Knowledge Transfer, Human Resource Management, MNCs

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Abstract:

Current research on international human resource management (HRM) is structured around the issue of global standardization versus the local adaptation of HRM practices. Numerous studies tended to adopt either an institutional or a strategic perspective. This article examines the interaction between these two groups of factors when MNCs transfer HRM knowledge from their HQ to foreign subsidiaries. The integrative theoretical framework proposed and empirically validated at three MNCs suggests that the choice of the knowledge to be transferred and transfer mechanisms is determined by both institutional and strategic variables. Moreover, the effectiveness of the transfer mainly depends mainly on organizational strategy and the role of HR function in this process.

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