HRM Strategies and MNCs from Emerging Economies in the UK

Abstract

Purpose – HRM practices in foreign subsidiaries have been the subject of much attention in recent years. However, research on HRM practices by subsidiaries of multinationals (MNCs) has so far focused largely on subsidiaries of western multinationals in western and or emerging economies. The authors have little knowledge concerning HRM practices of subsidiaries of multinationals from emerging economies in developed western countries. The purpose of this paper is to examine HRM practices of MNCs from emerging economies operating in western developed countries. Design/methodology/approach – Survey. Findings – A blend of practices has been adopted by the subsidiaries, ranging from emulating home country practices, adapting host country practices, and a Melange of home and host country practices. Originality/value – First, HRM practices used by emerging economy MNCs in an advanced economy have been identified. Second, the results suggest that MNCs from emerging economies behave differently from MNCs from developed countries such as Japan, the USA and Western European countries. Past research shows that MNCs from advanced economies such as Japanese MNCs in the UK tend to transplant the ideas and practices of so-called excellent human resource management systems from their own parent companies. However, Taiwanese MNCs deliberately adopt a varied HR approach to operate in an advanced economy as a result of dual pressures of home and host country effect. Consequently, apart from strategic issues wholly made by headquarters in Taiwan, other HR practices either adapt to local practices or use a hybrid style.