Mapping the Impact of Home and Host-Country Institutions on HRM in Emerging Market MNCs: A Conceptual Framework

Thunderbird International Business Review, Forthcoming

40 Pages Posted: 3 Jan 2019

See all articles by Tony Edwards

Tony Edwards

King's College London

Gerhard Schnyder

Loughborough University London - Institute for International Management; University of Cambridge - Centre for Business Research

Johann Fortwengel

King’s College London – King’s Business School

Date Written: December 18, 2018

Abstract

While there is a growing literature concerned with multinational companies from emerging markets (EMNCs), it does not contain a robust conception of how institutions shape human resource (HR) practices in such firms. We contribute to filling this gap through developing a framework of how institutions create a range of constraints and opportunities for EMNCs. Specifically, our framework contains three key elements of how MNCs from emerging markets interact with institutions: EMNCs develop approaches that to some extent reflect the perceived strengths and weaknesses of the institutions in the home country (institutional conditioning); the strategies of actors in EMNCs can overcome the weaknesses of the home country by drawing on institutions in other countries (institutional arbitrage); and the actions of EMNCs can reinforce, or create pressures for change in, the institutional context in the countries in which they operate (institutional change / consolidation). By mapping this set of strategies of EMNCs, we contribute to a fuller understanding of the relationship between institutions and HR practices, and we outline how the rise of EMNCs reshapes the global landscape by adding new kinds of firm behavior to capitalist diversity.

Keywords: Institution-Based View, Emerging Market MNCs (EMNCs), Internationalization, International Business

JEL Classification: M16, M54

Suggested Citation

Edwards, Tony and Schnyder, Gerhard and Fortwengel, Johann, Mapping the Impact of Home and Host-Country Institutions on HRM in Emerging Market MNCs: A Conceptual Framework (December 18, 2018). Thunderbird International Business Review, Forthcoming , Available at SSRN: https://ssrn.com/abstract=3303416

Tony Edwards

King's College London ( email )

Gerhard Schnyder (Contact Author)

Loughborough University London - Institute for International Management ( email )

Lesney Avenue
Here East
London, E15 2GZ
Great Britain
+44 (0)20 3805 1360 (Phone)

University of Cambridge - Centre for Business Research ( email )

Judge Business School Building
Cambridge, CB2 1AG
United Kingdom
++44 (0)1223 765325 (Phone)

HOME PAGE: http://www.cbr.cam.ac.uk/people/research-associates/gerhard-schnyder/

Johann Fortwengel

King’s College London – King’s Business School ( email )

150 Stamford Street
London, SE1 9NH
United Kingdom

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
45
Abstract Views
307
PlumX Metrics