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Influences on Human Resource Management Practices in Multinational Corporations

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Abstract

A study of human resource management practices in 249 U.S. affiliates of foreign-based multinational corporations (MNCs) shows that in general affiliate HRM practices closely follow local practices, with differences among specific practices. The degree of similarity of local practices is significantly influenced by the method of founding, dependence on local inputs, the presence of expatriates, and the extent of communication with the parent. In addition, sharp differences are revealed among affiliates of Canadian, Japanese and European MNCs, suggesting strong country effects. Together, these findings support the view of MNCs as composed of differentiated practices, which in turn are shaped by forces for local isomorphism and for internal consistency.

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Authors and Affiliations

  1. Harvard Business School,

    Philip M. Rosenzweig & Nitin Nohria

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  1. Philip M. Rosenzweig
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  2. Nitin Nohria
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*Philip M. Rosenzweig is Assistant Professor at the Harvard Business School. His research interests center on the management of multinational firms and have recently focused on foreign-based firms operating in the United States. Published articles have appeared in Management Science, California Management Review, Academy of Management Review, and European Management Journal.

**Nitin Nohria is Associate Professor at the Harvard Business School. He has extensively studied the management of MNCs and has published articles on the subject in Strategic Management Review and Sloan Management Review. He has coauthored two books: Beyond the Hype: Rediscovering the Essence of Management and Networks and Organization, both published by Harvard Business School Press.

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Rosenzweig, P., Nohria, N. Influences on Human Resource Management Practices in Multinational Corporations. J Int Bus Stud 25, 229–251 (1994). https://doi.org/10.1057/palgrave.jibs.8490199

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  • DOI: https://doi.org/10.1057/palgrave.jibs.8490199

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