Critiques and extensions of strategic international human resource management framework for dragon multinationals

This paper aims at critiquing several existing strategic international human resource management frameworks and discusses their inadequacy to apply directly to emerging multinational companies, especially those generated from Brazil, Russia, India, China and South Africa. To complement the existing strategic international human resource management frameworks, key variables relevant to emerging economies are identified and an extended model with reference to emerging multinational companies is developed with several research propositions. It is believed that the proposed model would better capture the current development of multinationals in transition, and alert emerging international managers to address several people management challenges in the global context.

International human resource management strategies of Chinese multinationals operating abroad

Strategic international human resource management (SIHRM) is crucial for the effective leveraging of human resources in organizations to achieve the desired business strategies. There is a rich collection of studies on western multinational corporations (MNCs) in China, but few studies that explore the SIHRM of Chinese MNCs operating overseas. This study utilizes cross-level, in-depth interviews to analyse SIHRM of three large Chinese multinationals. The paper contributes to literature by addressing two contextual SIHRM issues, namely the characteristics of the SIHRM for Chinese multinationals and how their SIHRM orientation facilitates their international investment and operation. The findings indicate that organizational transformation is the starting point for latecomers matching their international HRM strategies. Their SIHRM approaches, such as forming learning organizations, reliance on host-country nationals, reconciling both home and host-country effects and promoting ‘best practices’, facilitate their international operations.

Expatriate skills training strategies of Chinese multinationals operating in Australia

Recent years have witnessed a phenomenal growth in outward foreign direct investment (FDI) by Chinese multinationals. In contrast to their developed country counterparts, Chinese multinationals lack experience in foreign expansion and international operation. Although there has been increasing academic attention placed on Chinese outward FDI, little research on expatriate skills training of Chinese multinational enterprises (MNEs) has been conducted. Since the mainstream research focuses on expatriate pre-departure training rather than on learning during assignment, this study aims to bridge this gap by exploring how Chinese MNEs cope with expatriate training and skill enhancement when operating in an advanced economy such as Australia. The study utilises cross-level, in-depth interviews to analyse expatriate training in seven Chinese multinationals. Drawing on social learning theory, some patterns of Chinese expatriate skills training strategies are revealed, such as internationalisation as learning, the use of subsidiaries as a training tool, and learning as belonging.

Perceived factors affecting the integration-responsiveness framework: an analysis from Chinese multinationals operating in Australia

This study extends quantitative and conceptual studies that have clarified and assessed the underlying factorsinfluencing multinational corporations (MNCs) international business strategy choices relating to globalintegration and local responsiveness with the use of cross–level and in-depth interviews. Top managementperceptions from nine Chinese MNCs (CMNCs) with operations in Australia are detailed and it is argued acontingency approach tends to prevail within firms with organisational, industrial, and environmentalcontingencies predominating.

Strategic implications of global integration and local responsiveness for Chinese multinationals: an area for future study

Purpose – Based on the review of extant international business and management literature, this paper aims to examine the global integration (GI) and local responsiveness (LR) paradigm and its impact on the adoption of international business strategy (IBS) by multinational corporations (MNCs); second, discuss determinants that are critical in the process of forming IBS by MNCs; and third identify the lacuna in current research with respect to strategic implications of the framework for MNCs from emerging economies such as Chinese multinational corporations (CMNCs).Design/methodology/approach – Based on the extant literature review, this paper identifies a research gap and proposes several research questions for future study. First, the paper reviews prior studies on the GI-LR model and its impact on and strategic implications for IBS. Second, it examines how MNCs from developed countries adopt different types of IBS and what determinants drive their decision-making. Third, it attempts to discuss why CMNCs should be studied in terms of their choice of IBS based on the GI-LR mode. The paper concludes with research questions for future study.Findings – This paper summarizes determinants of IBS in a three-category table mainly based on prior studies on the GI-LR model from developed countries. As a consequence, it identifies a future research area in the field of international management.Originality/value – This paper is based on a comprehensive review of prior studies related to the GI-LR framework. The aim of the study is to identify a new research area in international management, that is, how MNCs from emerging country contexts, such as China, to co-ordinate GI and LR for their IBS.

Strategic implications of global integration and local responsiveness for Chinese multinationals: an area for future study

Purpose – Based on the review of extant international business and management literature, this paper aims to examine the global integration (GI) and local responsiveness (LR) paradigm and its impact on the adoption of international business strategy (IBS) by multinational corporations (MNCs); second, discuss determinants that are critical in the process of forming IBS by MNCs; and third identify the lacuna in current research with respect to strategic implications of the framework for MNCs from emerging economies such as Chinese multinational corporations (CMNCs).Design/methodology/approach – Based on the extant literature review, this paper identifies a research gap and proposes several research questions for future study. First, the paper reviews prior studies on the GI-LR model and its impact on and strategic implications for IBS. Second, it examines how MNCs from developed countries adopt different types of IBS and what determinants drive their decision-making. Third, it attempts to discuss why CMNCs should be studied in terms of their choice of IBS based on the GI-LR mode. The paper concludes with research questions for future study.Findings – This paper summarizes determinants of IBS in a three-category table mainly based on prior studies on the GI-LR model from developed countries. As a consequence, it identifies a future research area in the field of international management.Originality/value – This paper is based on a comprehensive review of prior studies related to the GI-LR framework. The aim of the study is to identify a new research area in international management, that is, how MNCs from emerging country contexts, such as China, to co-ordinate GI and LR for their IBS.

The impact of employee perceptions of training on organizational commitment and turnover intentions: a study of multinationals in the Chinese service sector

This study examines the impact of employee perceptions of training on organizational commitment, and the latter's relationship with turnover intentions. Structured equation modelling is conducted on survey data from 437 Chinese employees of five multinational enterprises operating in the Chinese service sector. The results of the survey are consistent with social exchange theory. They highlight the importance of training as a tool to enhance the affective organizational commitment of employees, and reduce turnover. The findings differ from that of previous studies in non-Chinese settings. No evidence was found to indicate that motivation to learn and the perceived benefits of training impact on the organizational commitment of employees. This may be explained by three factors: the involuntary nature of employee training, the limited career development opportunities on offer to local employees of multinational enterprises and the difficulty employees face in applying learnt skills given cultural differences. The implications for research and practice are discussed.

Capital structure choice of foreign subsidiaries: evidence from multinationals in Brazil

Is the capital structure choice of a foreign subsidiary different from the choice of a comparable company controlled by nationals? If so, what are the differences? In this paper we shed some light on these questions by looking at a sample of foreign subsidiaries in Brazil over the period 1985 to 1994. We find that the foreign subsidiaries in our sample are more levered than their Brazilian counterparts. This difference, however, has declined over time. The evidence is consistent with the hypothesis that foreign subsidiaries increase leverage as a hedge against an expropriation of assets in a nationalization process.

Localization strategies of multinationals in Brazil which characteristics of the Brazilian market force multinational companies to localize their marketing activities?

Uma vez que as perspectivas de crescimento económico nos países mais desenvolvidos, como a Europa, os EUA eo Japão estão diminuindo, os mercados emergentes têm se tornado cada vez mais importante para muitas empresas multinacionais. Brasil, Rússia, Índia e China (BRICs) são agora os principais mercados em crescimento em todo o mundo e as empresas estão buscando estratégias para explorar ao máximo o potencial de consumo promissor nessas regiões. Um dos modos mais elaborados de prosseguir essa estratégia é conhecida como "localização" - uma adaptação das práticas de negócios (ao longo de toda a cadeia de suprimentos) com as preferências e condições locais. Este artigo é projetado para analisar as atividades de localização de empresas multinacionais no Brasil. O foco da análise é o de investigar as características do mercado brasileiro, que induzem as multinacionais a localizar o seu marketing mix (composto de produto, preço, colocação e promoção). Em dois estudos de casos com a empresa Suiça Nestlé e a empresa Alemã Volkswagen vários padrões de localização foram no mercado consumidor brasileiro. Os quatro resultados mais significativos da análise são os diferentes padrões sociais o Brasil, que forçar as empresas a reformular certas funções do seu mix de marketing (por exemplo, a colocação no caso da Nestlé), a aceitação dos consumidores brasileiros a pagar preços relativamente elevados (por exemplo, taxas de Volkswagen até 100% mais por seus produtos em relação à Alemanha); o enorme tamanho do Brasil ea infra-estrutura deficiente, que exigem uma abordagem de distribuição localizada; eo caráter atualmente ainda menos exigente dos estratos de consumidores brasileiros emergentes, que permitem às empresas oferecer produtos menos sofisticados em comparação aos mercados europeus.

The effects of state ownership in the internationalization of emerging multinationals

Esta tese é um compendio de três trabalhos de pesquisa que visam analisar o efeito da participação do estado na estrutura de propriedade das Multinacionais de Países Emergentes (EMNEs). A participação do estado como acionista é um fenómeno que pode trazer novas contribuições no âmbito da governança corporativa, administração da empresa e a tomada de decisões estratégicas. Os estudos aqui inclusos permitem identificar, a partir de momentos, diferentes, até que ponto o estado, na posição de proprietário da EMNE, pode impactar a mesma. Os trabalhos vão desde os mecanismos de escolha de firmas nas quais investir ate o impacto no ritmo de internacionalização das empresas, explicando também os mecanismos que o estado usa para ganhar aceso à tomada de decisões por meio de mudanças na governança corporativa

Multinationals and Exports in a Large and Protected Developing Country

This paper examines an industry-level model developed to analyze the impact of affiliates of multinational firms (MNFs) on the host country's revealed comparative advantages (RCAs), which predicts that the referred impact is given by both technology service and industry orientation. Based on Brazilian manufacturing industries during the import-substitution industrialization, panel data estimates show that MNFs negatively affected RCA, which is explained by location advantages in industries presenting comparative disadvantages, as reinforced by a location model. Two other important results are: (i) import protection had a stronger anti-export effect on multinationals than on national firms; (ii) MNFs were concentrated in industries with lower world-export growth.