Institutional duality and human resource management practice in foreign subsidiaries of multinationals

Stavrou, Eleni, Parry, Emma, Gooderham, Paul ORCID logoORCID:, Morley, Michael J. and Lazarova, Mila (2021) Institutional duality and human resource management practice in foreign subsidiaries of multinationals. Human Resource Management Journal . ISSN 0954-5395 [Article] (Published online first) (doi:10.1111/1748-8583.12357)

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We examine how institutional context affects the decisions that subsidiaries of multinational corporations (MNCs) make in pursuing particular human resource management (HRM) practices in response to institutional duality. Drawing on Varieties of Capitalism, along with the concept of intermediate conformity, we argue that the use of particular HRM practices by MNC subsidiaries will differ depending on both the combination of home and host institutional contexts, and on the nature of the particular practice under consideration. Using data from a survey of HRM practices in 1196 firms across ten countries, we compare HRM practices in subsidiaries located and headquartered in different combinations of liberal and/or coordinated market economies. Our study suggests MNC subsidiaries conform only to the most persuasive norms, while exercising their agency to take advantage of the opportunities presented by institutional duality to adopt practices that distinguish them from indigenous competitors.

Item Type: Article
Research Areas: A. > Business School > International Management and Innovation > International Business group
Item ID: 32956
Notes on copyright: © 2021 The Authors. Human Resource Management Journal published by John Wiley & Sons Ltd.
This is an open access article under the terms of the Creative Commons Attribution-NonCommercial-NoDerivs License, which permits use and distribution in any medium, provided the original work is properly cited, the use is non-commercial and no modifications or adaptations are made.
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Depositing User: Paul Gooderham
Date Deposited: 21 Apr 2021 08:26
Last Modified: 29 Nov 2022 17:54

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