Internationalisation as a Determining Factor of HRM Outsourcing

International Journal of Human Resource Management, Vol. 18, No. 8, pp. 1557-1567, 2007

16 Pages Posted: 25 Sep 2007 Last revised: 13 Sep 2010

See all articles by Eleanna Galanaki

Eleanna Galanaki

Athens University of Economics and Business

Nancy Papalexandris

Athens University of Economics and Business

Date Written: September 10, 2010

Abstract

This paper examines the effect of company internationalisation on the practice of outsourcing HRM functions in Greece. It holds the assumption that HRM outsourcing is perceived as an innovative practice and that foreign multinationals (MNCs) will use this practice more than native ones do. In doing that, the study aims at examining whether "diffusion" of loosely-regulated management practices such as HRM outsourcing, is sustained by foreign multinationals.

The findings of the 2000 CRANET survey are presented to show that HRM outsourcing is used to a lesser extent in Greece than other western economies. Then the hypothesis that MNCs outsource more HRM services than Greek companies do is tested. The analysis draws upon the findings of a survey addressed to HR directors of both foreign multinationals and Greek companies. A significant difference is found in the extent of HRM outsourcing between Greek companies and foreign multinational subsidiaries. This is adequately explained through the comparison of the way HRM is conducted in Greek each type of company, as well as the segregation of the Greek market for HRM services. The paper adds to the discussion on the role of multinationals in the diffusion of innovative managerial practices, as well as to the HRM convergence-divergence debate.

Keywords: Outsourcing, Human Resource Management, Multinationals, Greece, Convergence

JEL Classification: M55

Suggested Citation

Galanaki, Eleanna and Papalexandris, Nancy, Internationalisation as a Determining Factor of HRM Outsourcing (September 10, 2010). International Journal of Human Resource Management, Vol. 18, No. 8, pp. 1557-1567, 2007. Available at SSRN: https://ssrn.com/abstract=901165

Eleanna Galanaki (Contact Author)

Athens University of Economics and Business ( email )

Athens
Greece
+30 210 8203473 (Phone)

Nancy Papalexandris

Athens University of Economics and Business ( email )

76 Patission Street
Athens, 104 34
GREECE

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