HRM integration mechanism usage in MNC subsidiaries in China

Abstract

Purpose

The present study sought to shed light on the antecedents of HRM integration mechanism usage in MNCs and to establish the extent to which antecedents differ in importance across different mechanism types.

Design/methodology/approach

A set of hypotheses was developed and tested on a sample of 76 European‐owned subsidiaries located in China.

Findings

The results show that the use of HRM integration mechanisms is greater in more capital‐intensive subsidiaries that employ larger numbers of expatriates. Post‐hoc analyses provide support for the view that integration mechanisms are used in a complementary fashion rather than as substitutes.

Research limitations/implications

The study did not include the MNC's strategic international HRM orientation and the sample size is rather small. The results of the study do not allow any conclusions to be drawn regarding the effectiveness of the mechanisms, however this would be a fruitful issue to pursue in future research.

Originality/value

The paper addresses a neglected issue in the international HRM literature, namely the mechanisms through which MNCs integrate HRM practices across their foreign subsidiaries, and why and how they are used. More specifically, this study makes its contribution by combining multiple mechanisms of HRM integration and providing explanations for their differential usage.

Citation

Smale, A., Björkman, I. and Sumelius, J. (2012), "HRM integration mechanism usage in MNC subsidiaries in China", Personnel Review, Vol. 41 No. 2, pp. 180-199. https://doi.org/10.1108/00483481211200024