Uncovering Competitive and Institutional Drivers of Hrm Practices
Uncovering competitive and institutional drivers of HRM practices in multinational corporations
Elaine Farndale & Jaap Paauwe Tilburg University, The Netherlands
Submitted to: Human Resource Management Journal, Special Edition on International HRM
April 2007
This paper is not yet finalised and, for this reason, the authors request that it is not quoted without permission. However, the authors warmly invite requests to do so or discussion about any issue in connection with this paper.
Dr Elaine Farndale & Professor Jaap Paauwe Department of Human Resource Studies Tilburg University PO Box 90153 5000 LE Tilburg The Netherlands Tel.: +31 (0)13 466 2827 / 2371 Fax: +31 (0)13 466 3002 Email: farndale@uvt.nl, paauwe@uvt.nl 1
Uncovering competitive and institutional drivers of HRM practices in multinational corporations
ABSTRACT
Current international human resource management (IHRM) literature focusing on multinational corporations (MNCs) presents evidence of both similarities and differences in the HRM practices adopted in different global locations. However, the drivers behind this duality require more detailed investigation. This paper focuses on exploring why MNCs position themselves within global markets as they do, exploring how extant theory can help explain the drivers behind both global and national HRM practices. Based on a worldwide sample of in-depth interview-based case studies of well-known MNCs, we explore the ways in which different firms react to both institutional and competitive pressures in selecting their approach to HRM. The findings uncover a differentiation between external global competitive isomorphic pressures, external national institutional isomorphic pressures, and internal processes of strategic choice and competitive differentiation. It is suggested that MNCs face all three drivers of HRM simultaneously, leading to different patterns of practice adoption, adaptation and innovation.
KEYWORDS
HRM practices;
Elaine Farndale & Jaap Paauwe Tilburg University, The Netherlands
Submitted to: Human Resource Management Journal, Special Edition on International HRM
April 2007
This paper is not yet finalised and, for this reason, the authors request that it is not quoted without permission. However, the authors warmly invite requests to do so or discussion about any issue in connection with this paper.
Dr Elaine Farndale & Professor Jaap Paauwe Department of Human Resource Studies Tilburg University PO Box 90153 5000 LE Tilburg The Netherlands Tel.: +31 (0)13 466 2827 / 2371 Fax: +31 (0)13 466 3002 Email: farndale@uvt.nl, paauwe@uvt.nl 1
Uncovering competitive and institutional drivers of HRM practices in multinational corporations
ABSTRACT
Current international human resource management (IHRM) literature focusing on multinational corporations (MNCs) presents evidence of both similarities and differences in the HRM practices adopted in different global locations. However, the drivers behind this duality require more detailed investigation. This paper focuses on exploring why MNCs position themselves within global markets as they do, exploring how extant theory can help explain the drivers behind both global and national HRM practices. Based on a worldwide sample of in-depth interview-based case studies of well-known MNCs, we explore the ways in which different firms react to both institutional and competitive pressures in selecting their approach to HRM. The findings uncover a differentiation between external global competitive isomorphic pressures, external national institutional isomorphic pressures, and internal processes of strategic choice and competitive differentiation. It is suggested that MNCs face all three drivers of HRM simultaneously, leading to different patterns of practice adoption, adaptation and innovation.
KEYWORDS
HRM practices;
References: Source: Paauwe (2004: 91) 37