Host country specific factors and the transfer of human resource management practices in multinational companies

B Myloni*, AWK Harzing, H Mirza

*Corresponding author for this work

Research output: Contribution to journalArticleScientificpeer-review

Abstract

This paper concerns the transfer of human resource management (HRM) Practices by multinational companies (MNCs) to their overseas subsidiaries. It investigates how factors originating from the cultural and institutional framework of the host country impact on this transfer. Using data collected from MNC subsidiaries located in Greece and local Greek firms, we examine the degree to which several HRM practices in MNC subsidiaries resemble local practices. Our empirical findings indicate that subsidiaries have adapted their HRM practices to a considerable extent, although some practices are more localised than others. Specifically, practices that do not fit well with Greek culture or are in contrast to employee regulations show a low level of transfer. On the other hand, our interviews revealed that significant cultural changes are underway and that the institutional environment is gradually getting more relaxed, leaving more room to manoeuvre for MNCs.

Original languageEnglish
Pages (from-to)518-534
JournalInternational Journal of Manpower
Volume25
Issue number6
DOIs
Publication statusPublished - 2004
Externally publishedYes

Keywords

  • human resource management
  • multinational companies
  • national cultures
  • Greece
  • NATIONAL CULTURE
  • FIRMS

Cite this

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Host country specific factors and the transfer of human resource management practices in multinational companies. / Myloni, B; Harzing, AWK; Mirza, H.

In: International Journal of Manpower, Vol. 25, No. 6, 2004, p. 518-534.

Research output: Contribution to journalArticleScientificpeer-review

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AU - Myloni, B

AU - Harzing, AWK

AU - Mirza, H

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AB - This paper concerns the transfer of human resource management (HRM) Practices by multinational companies (MNCs) to their overseas subsidiaries. It investigates how factors originating from the cultural and institutional framework of the host country impact on this transfer. Using data collected from MNC subsidiaries located in Greece and local Greek firms, we examine the degree to which several HRM practices in MNC subsidiaries resemble local practices. Our empirical findings indicate that subsidiaries have adapted their HRM practices to a considerable extent, although some practices are more localised than others. Specifically, practices that do not fit well with Greek culture or are in contrast to employee regulations show a low level of transfer. On the other hand, our interviews revealed that significant cultural changes are underway and that the institutional environment is gradually getting more relaxed, leaving more room to manoeuvre for MNCs.

KW - human resource management

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KW - national cultures

KW - Greece

KW - NATIONAL CULTURE

KW - FIRMS

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