Does ownership structure of emerging-market firms affect their outward FDI? The case of the Indian automotive and pharmaceutical sectors

This paper examines the impact of ownership structures of emerging-market firms, which are shaped by local institutions, on the decision of these firms to undertake outward FDI. Our results suggest that family firms and firms with concentrated ownerships (both ubiquitous in emerging markets) are less likely to invest overseas, and that strategic equity holding by foreign investors facilitates outward FDI. We conclude that organisational forms such as family firms, which are optimal outcomes of institutions prevailing in emerging markets, may be suboptimal in a changing business environment in which outward FDI is necessary for access to resources and markets.

Determinants of employment growth at MNEs:evidence from Egypt, India, South Africa and Vietnam

Many foreign investment operations into emerging markets are small, and are likely to have only a limited impact on the local economy. However, host governments often expect transfer of advanced technology from multinational enterprises (MNEs) operating in these markets to local firms by way of inter-firm mobility of skilled labourers. The extent of such transfers would be limited, among other factors, by the size of the pool of skilled labourers that can potentially be mobile between MNEs and local firms. This, in turn, is determined by employment growth at the MNEs. We develop an empirical specification that models this employment growth, by drawing on both the economics and international business literature. This model is then estimated using firm-level data from four emerging markets. We find that wholly owned foreign direct investment operations have higher employment growth, while local industry and institutional characteristics moderate the growth effect. This suggests that policies encouraging foreign investors to set up in form of joint ventures may not actually raise the benefits for the host economy.

Learning by exporting:lessons from high-technology SMEs

We investigate the learning by exporting hypothesis by examining the effect of exporting on the subsequent innovation performance of a sample of high-technology SMEs based in the UK. We find evidence of learning by exporting, but the pattern of this effect is complex. Exporting helps high-tech SMEs innovate subsequently, but does not make them more innovation intensive. There is evidence that consistent exposure to export markets helps firms overcome the innovation hurdle, but that there is a positive scale effect of exposure to export markets which allows innovative firms to sell more of their new-to-market products on entering export markets. Service sector firms are able to reap the benefits of exposure to export markets at an earlier (entry) stage of the internationalization process than are manufacturing firms. Innovation-intensive firms exhibit a different pattern of entry to and exit from export markets from low-intensity innovators, and this is reflected in different effects of exporting. © 2012 Elsevier Ltd.

Export propensity, export intensity and firm performance:the role of the entrepreneurial founding team

We investigate how the characteristics and experience of the entrepreneurial founding team (EFT) affect the export orientation and subsequent performance of the businesses they establish, while allowing for the mutually reinforcing relationship between exporting and productivity. Using a sample of UK technology-based firms, we hypothesise and confirm that the set of EFT human capital needed for entering export markets is different from that required for succeeding in export markets. Commercial and managerial experience helps firms become exporters, but once over the exporting hurdle it is education, both general and specific, that has a substantially positive effect. The overall pattern of human capital effects on productivity is similar to those for export propensity. We also find evidence that productive firms are more likely both to enter export markets and to be export intensive, and that exporting boosts subsequent firm productivity.

Strategic HRM:transforming its responsibilities toward ecological sustainability - the greatest global challenge facing organizations

If we are to move to a more sustainable world, all actorsÑincluding governments, organizations, communities, and individualsÑneed to play their part in committing to a shift in the way we live our lives. This conceptual article explores the challenges that face the human resource management (HRM) profession in moving to a strategic position that supports the requirements of the biophysical environment. We argue that this is becoming an imperative for the future survival and success of organizations large and small, and thus is likely to be a key "modus operandi" for HRM professionals in the future who are looking to embed ecological sustainability into their organizations. This article offers new insights into developing business strategies for ecological sustainability, highlighting the implications for strategic HRM activity through organizational effectiveness, leadership, values, and, ultimately, HRM processes and systems.

HRM, organizational capacity for change, and performance:a global perspective

This special issue brings together a variety of articles, each one enriching understanding about whether and how human resource management (HRM) influences organizational performance (however defined) against a backdrop of complex change. We present a preliminary framework that enables us to integrate the diverse themes explored in the special issue, proposing a mediating role for organizational change capacity (OCC). OCC represents a particular subset within the resource-based literature labeled as “dynamic capabilities.” Although not well researched, there is evidence that OCC is positively associated with firm performance and that this relationship is stronger given conditions of high uncertainty. Our framework reflects on external and internal parameters, which we suggest moderate the relationship between human resource management (HRM), OCC, and organizational performance. Our intention is to provide compelling insight for both practitioners and researchers, especially those whose remit extends beyond national boundaries, with reference to areas of the globe as disparate as Greece, Ireland, Pakistan, Switzerland, and the United Kingdom. © 2012 Wiley Periodicals, Inc.

What can situated learning theory tell us about leading to develop organizational learning capabilities for entrepreneurial performance? lessons from a knowledge-intensive small firm

Although the role of strategic leadership in developing organizational learning capabilities has been examined to a certain extent, the specific behaviors and mechanisms through which these capabilities are developed have not been adequately understood. Paucity of research in this direction is even more conspicuous in a small firm/entrepreneurship context, which has been linked to innovation, economic growth, and employment generation. Reporting on an ethnographic study of a knowledge-intensive, growth-oriented small firm, this article addresses this gap in the literature by integrating strategic leadership and organizational learning theory in an entrepreneurship context. In this undertaking, situated learning theory is used as the major analytical lens, to shed light on how strategic leadership can build organizational learning capabilities that underpin entrepreneurial performance in small firms. Finally, implications for situated learning theory as an organizational learning perspective and leadership practice in an entrepreneurship context are submitted. © 2012 Wiley Periodicals, Inc.

The link between HR practices, psychological contract fulfillment, and organizational performance:the case of the Greek services sector

The purpose of this study is to investigate the impact of human resource (HR) practices on organizational performance through the mediating role of psychological contract (expressed by the influence of employer on employee promises fulfillment through employee attitudes). The study is based on a national sample of 78 organizations from the public and private services sector in Greece, including education, health, and banking, and on data obtained from 348 employees. The statistical method employed is structural equation modeling, via LISREL and bootstrapping estimation. The findings of the study suggest that employee incentives, performance appraisal, and employee promotion are three major HR practices that must be extensively employed. Furthermore, the study suggests that the organization must primarily keep its promises about a pleasant and safe working environment, respectful treatment, and feedback for performance, in order for employees to largely keep their own promises about showing loyalty to the organization, maintaining high levels of attendance, and upholding company reputation. Additionally, the study argues that the employee attitudes of motivation, satisfaction, and commitment constitute the nested epicenter mediating construct in both the HR practices–performance and employer–employee promise fulfillment relationships, resulting in superior organizational performance. © 2012 Wiley Periodicals, Inc.

Chinese host country nationals' willingness to help expatriates:the role of social categorization

In this study, we examine Chinese host country nationals' (HCNs') willingness to offer role information and social support to expatriates from the United States. Using data from 132 Chinese managers, we find that ethnocentrism, interpersonal affect, and guanxi significantly impact HCNs' willingness to offer help to expatriates. Furthermore, we find that the job level of the expatriate has a significant impact on HCNs' willingness to offer role information but not on willingness to offer social support. The results suggest that paying attention to the perceptions and reactions of HCNs toward expatriates is imperative for multinational companies if expatriates are to succeed on their assignments. ©2011 Wiley Periodicals, Inc.

Handbook of research in comparative human resource management

This unique and path-breaking Handbook explores the issue of comparative Human Resource Management (HRM) and challenges the notion that there can be a 'one best way' to manage HRM. The Handbook of Research on Comparative Human Resource Management provides a theoretical, practical and regional analysis of comparative HRM. This book, edited by two specialists on comparative HRM and written by leading experts on each topic and from each region, explores the range of different approaches to conceptualising HRM, and highlights HRM policy and practice that occur in the various regions of the world. As such, the volume provides a challenge to the typical assumption that there are consistent problems in managing human resources around the globe that call for standardised solutions. Instead, the contributors emphasise the importance of institutional and cultural factors that make HRM a most context-sensitive management task. Offering a comprehensive view for readers with different interests, this insightful Handbook will prove to be an essential resource for academics, researchers and postgraduate students in international business, business administration, HRM, socio-economics and cross-cultural management. Practitioners interested in the cultural aspects of HRM will also find this Handbook invaluable.

The changing face of people management in India

India has been identified as one of the biggest emerging markets in the world. Indian organizations have increasingly begun to understand the importance of human resources and have started to take into account the motivation, commitment and morale of its workforce. Despite great advances in human resource practices in India, the relevant literature on this subject remains scarce. This book seeks to fill the critical gap in the literature by providing a thorough understanding of the changing face of Indian HRM systems. Seeking to provide a comprehensive overview of Indian HRM practices, the book is structured into five parts: •Developments in Indian HRM •Determinants of Indian HRM •Sector specific HRM •Emerging themes •Future challenges and the way forward The Changing Face of People Management in India is written exclusively by Indian natives in order to minimise the Western bias and to provide a realistic picture of HRM practices in India. This book is a key resource for anyone studying or working in HRM or international business or with an interest in the unique Indian HRM context.

Performance management systems:a global perspective

Performance management is the process by which organizations set goals, determine standards, assign and evaluate work, and distribute rewards. But when you operate across different countries and continents, performance management strategies cannot be one dimensional. HR managers need systems that can be applied to a range of cultural values. This important and timely text offers a truly global perspective on performance management practices. Split into two parts, it illustrates the key themes of rater motivation, rater-ratee relationships and merit pay, and outlines a model for a global appraisal process. This model is then screened through a range of countries, including Germany, Japan, USA, Turkey, China, India and Mexico. Using case studies and discussion questions, and written by local experts, this text outlines the tools needed to understand and ‘measure’ performance in a range of socio-economic and cultural contexts. It is essential reading for students and practitioners alike working in human resources, international business and international management.

Universalistic or contingency model? Contribution of HRM towards firms’ performance in Greece

This paper investigates the impact of HRM systems on organisational performance in a sample of 178 Greek manufacturing organisations. The results show strong support for the ‘universalistic’ model, highlighting that both resource-development and reward-relations systems are positively related with organisational performance. The results also show weak and partial support for the ‘contingency model’, i.e., resourcedevelopment and reward-relations systems are contingent on the business strategies of quality, innovation, and cost in determining organisational efficiency. The study concludes that the universalistic and contingency perspectives are not necessarily mutually exclusive but on the contrary are in some cases complementary.

The impact of buddying on psychological capital, work engagement and turnover intentions:an empirical study of socialization in the professional services sector

This article reports on a study investigating the impact of new employees' satisfaction with buddying on work engagement and explores the role of psychological capital in mediating this relationship. The study took place within a professional services organization wherein data were collected from 78 graduate newcomers in receipt of buddying. Satisfaction with buddying was found to have a positive relationship to both work engagement and psychological capital. The satisfaction with the buddy/work engagement relationship was fully mediated by psychological capital, providing support for Saks & Gruman's (2011) socialization resources theory. The results underscore the valuable role buddying can play as part of organizational socialization from a positive organizational behavior perspective. The research contributes to the growing evidence that positively oriented human resource practices can develop personal resources of newcomers within organizations. Recommendations are made for how the organization can improve and build upon this resource, thus developing the psychological capital of newcomers. © 2012 Wiley Periodicals, Inc.