HRM practices of MNEs and domestic firms in Ghana: divergence or convergence?

The purpose of this paper is to adopt the convergence-divergence perspective to examine the extent of similarities and differences in human resource management practices between multinational enterprise subsidiaries and local firms in Ghana.

This paper draws from multiple case study evidence using in-depth face-to-face interviews and document analysis. The data were analyzed in four stages using both thematic analysis and cross-case analysis techniques.

The authors found both convergence and divergence, however, the evidence points to more convergence and direction toward convergence between MNEs and local firms’ HRM practices.

Even though there was evidence of cultural embeddedness within local firms in the adoption of certain HRM practices, the influence of national culture on HRM practice convergence between MNEs and local firms has been limited. Thus, the convergence-divergence debate through the lens of national culture may need to be re-examined.

The evidence of convergence and direction toward convergence tendencies within the context can be argued to be less underpinned by local isomorphism limited host-country influence. Practically, there is something to learn from indigenous Ghanaian organizations that can contribute to HRM advancement, the Ghanaian concept of annual durbars, annual or semi-annual gatherings to take stock of past activities and to award hard working staff, could provide the platform to strengthen the employer-employee relationship at the firm level.

This study fills an important contextual gap (a less developed country’s context) within the convergence-divergence debate and contributes to informing new knowledge of the convergence-divergence debate, which points to more convergence and direction toward convergence between MNEs and local firms’ HRM practices.