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Opening the black box of the relationship between HRM practices and firm performance: A comparison of MNE subsidiaries in the USA, Finland, and Russia

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Abstract

This paper investigates the extent to which different human resource management (HRM) practices work better in different countries. We also try to open the black box between HRM and multinational enterprise (MNE) subsidiary performance by considering mechanisms through which HRM practices affect MNE subsidiary performance. The study utilizes a unique data set consisting of subsidiaries of 241 MNEs operating in Russia, USA, and Finland. In the partial least-square analysis used to examine our hypotheses, we demonstrate that different HRM practices are preferable in different countries, and that motivation and ability are important mediating variables in the HRM–MNE subsidiary performance relationship.

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Notes

  1. In another review of empirical studies on HRM and firm performance, Boselie et al. (2005) found that employee training, involvement in decision-making, reward and compensation, and communication and information sharing were the most commonly studied HRM practices.

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Acknowledgements

The authors gratefully acknowledge financial support from the Swedish Research Council. They are also most thankful to JIBS Departmental Editor Mary Ann Von Glinow, and to the anonymous JIBS reviewers who helped us in improving our manuscript.

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Authors and Affiliations

  1. Institute of International Business, Stockholm School of Economics, Stockholm, Sweden

    Carl F Fey & Sergey Morgulis-Yakushev

  2. Stockholm School of Economics Russia, St Petersburg, Russia

    Carl F Fey & Sergey Morgulis-Yakushev

  3. J. Mack Robinson College of Business, Georgia State University, Atlanta, USA

    Hyeon Jeong Park

  4. Swedish School of Economics, Helsinki, Finland

    Ingmar Björkman

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  1. Carl F Fey
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Correspondence to Carl F Fey.

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Accepted by Mary Ann Von Glinow, Departmental Editor, 10 January 2008. This paper has been with the authors for two revisions.

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Fey, C., Morgulis-Yakushev, S., Park, H. et al. Opening the black box of the relationship between HRM practices and firm performance: A comparison of MNE subsidiaries in the USA, Finland, and Russia. J Int Bus Stud 40, 690–712 (2009). https://doi.org/10.1057/jibs.2008.83

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