Localization of international human resource management in EMNCs : a comparative case analysis of Chinese MNCs in UK

Wang, Lijie and Friesl, Martin and Kotlar, Josip (2019) Localization of international human resource management in EMNCs : a comparative case analysis of Chinese MNCs in UK. PhD thesis, Lancaster University.

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Abstract

By developing the multidimensional model of IHRM practice localization and autonomy, this study provides a more comprehensive framework of the typology and antecedents of IHRM study within the tension between global integration and local responsiveness. In order to answer the research question to explore the types of IHRM in multinational corporations from emerging economies, and the key factors that influence MNCs’ IHRM patterns, this study adopts a multiple case study approach with 9 subsidiaries (from 7 Chinese MNCs) operating in UK. A key insight is that there are different IHRM patterns exercised by Chinese MNCs with the combination of different levels of HRM practice localization and HRM autonomy. The various IHRM patterns are represented by six HRM strategies including global, transnational, opportunistic dual, passive dual, confederate, and multidomestic HRM. These specified IHRM types particularly contribute to the empirical IHRM typology studies in the context of EMNCs. A second insight reveals that the variance of IHRM patterns can be explained from both the corporate’s aspect including MNCs’ integrative capabilities and international strategies, and the subsidiaries’ aspect including subsidiaries’ entry mode and their resource dependence on parent company. Such relationships enrich our understanding of MNCs’ IHRM in institutional theory, resource-based and resource dependence theories. Moreover, this study extends IHRM research in the context of emerging countries using China as an example which also provides contextual and cultural explanations for the specific IHRM strategies found in this study.