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Mapping the impact of home- and host-country institutions on human resource management in emerging market multinational companies: A conceptual framework

Research output: Contribution to journalArticle

Tony Edwards, Gerhard Schnyder, Johann Fortwengel

Original languageEnglish
Pages (from-to)531-544
Number of pages14
JournalThunderbird International Business Review
Volume61
Issue number3
Early online date20 Feb 2019
DOIs
Accepted/In press15 Dec 2018
E-pub ahead of print20 Feb 2019
Published1 May 2019

King's Authors

Abstract

While there is a growing literature concerned with multinational companies from emerging markets (EMNCs), it does not contain a robust conception of how institutions shape human resource (HR) practices in such firms. We contribute to filling this gap through developing a framework of how institutions create a range of constraints and opportunities for EMNCs. Specifically, our framework contains three key elements of how MNCs from emerging markets interact with institutions: EMNCs develop approaches that to some extent reflect the perceived strengths and weaknesses of the institutions in the home country (institutional conditioning); the strategies of actors in EMNCs can overcome the weaknesses of the home country by drawing on institutions in other countries (institutional arbitrage); and the actions of EMNCs can reinforce, or create pressures for change in, the institutional context in the countries in which they operate (institutional change / consolidation). By mapping this set of strategies of EMNCs, we contribute to a fuller understanding of the relationship between institutions and HR practices, and we outline how the rise of EMNCs reshapes the global landscape by adding new kinds of firm behavior to capitalist diversity.

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