The effects of market economy and foreign MNE subsidiaries on the convergence and divergence of HRM

Farndale, E., Brewster, C. ORCID: https://orcid.org/0000-0001-5314-1518, Ligthart, P. and Poutsma, E. (2017) The effects of market economy and foreign MNE subsidiaries on the convergence and divergence of HRM. Journal of International Business Studies, 48 (9). pp. 1065-1086. ISSN 1478-6990 doi: 10.1057/s41267-017-0094-8

Abstract/Summary

This study explores patterns of human resource management (HRM) practices across market economies, and between indigenous firms and foreign MNE subsidiary operations, offering a novel perspective on convergence and divergence. Applying institutional theorizing to improve our understanding of convergence/ divergence as a process and an outcome, data collected from nine countries at three points in time over a decade confirm that convergence and divergence occur to different extents in a non-linear fashion, and vary depending on the area of HRM practice observed. Patterns of adoption and convergence/ divergence are explained through the effect of institutional constraints, which vary between liberal and coordinated market economies, and between indigenous firms and foreign MNE subsidiaries. The study contributes a more graded conceptualization of convergence/ divergence, which reflects the complex dynamic reality of international business.

Item Type	Article
URI	https://reading-clone.eprints-hosting.org/id/eprint/70478
Identification Number/DOI	10.1057/s41267-017-0094-8
Refereed	Yes
Divisions	Henley Business School > International Business and Strategy
Publisher	Palgrave Macmillan
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