A BRIC MNE's subsidiary in France: human resource management in adaptive mode

Abstract

Purpose

Some scholars state that multinational enterprises (MNEs) from developing markets manage their subsidiaries in a different way than MNEs from developed markets because the former have to overcome the liability of their country of origin. To analyze this question through the lens of human resource management (HRM), we study the case of a BRIC MNE's subsidiary in France.

Design/methodology/approach

We adopted an exploratory and descriptive single case study research design. We used multiple data sources: interviews, internal company documents, academic publications, and media sources.

Findings

The results show that the BRIC MNE subsidiary standardizes its HRM practices towards global best practices to compete successfully with MNEs from developed markets. Furthermore, the subsidiary's origin that was considered as a shortcoming in the past is an advantage at present time. Finally, according to the interviewed managers, French subsidiary must overcome a country of origin liability in that it has to change the way that it may be perceived in terms of the issues linked to France's labor relations system.

Practical implications

MNEs originating from developing markets should consider their origin as an advantage: they may be perceived as dynamic, growing, and aspiring to be the best. Another implication concerns the use of global best practices that may facilitate the global coordination of MNEs.

Originality/value

This paper contributes to the literature on the HRM practices of MNEs from developing markets operating in developed markets.

Citation

Muratbekova-Touron, M. and Pinot de Villechenon, F. (2013), "A BRIC MNE's subsidiary in France: human resource management in adaptive mode", Journal of Business Strategy, Vol. 34 No. 5, pp. 48-53. https://doi.org/10.1108/JBS-02-2013-0018