Strategic Issues and Local Constraints in Transnational Compensation Strategies:: An Analysis of Cultural, Institutional and Political Influences
Judith Eidems and
European Management Journal, 2007, vol. 25, issue 2, 118-131
In response to globalisation, increasing numbers of multinational enterprises (MNEs) have implemented transnational corporate strategies characterised by global standardisation as well as local responsiveness. If human resource management (HRM) is to provide a support function, it is suggested that these strategic developments should be reflected in the compensation strategies of the MNEs. The authors apply a resource dependence perspective to analyse power relations in MNEs. Political influences, in addition to cultural and institutional influences, may impact the balance between global standardisation and local responsiveness within the transnational compensation strategy. This theory-based analysis is applied to the case of a transnational compensation strategy implemented by a pharmaceutical MNE. The result of these theoretical and empirical considerations is a framework of critical resources being responsible for different power relations in MNEs.
Keywords: Transnational; Strategy; Compensation; IHRM; Resource; Dependence; Culture; Institutions; Case; Study (search for similar items in EconPapers)
References: Add references at CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed
Downloads: (external link)
Full text for ScienceDirect subscribers only
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:eee:eurman:v:25:y:2007:i:2:p:118-131
Ordering information: This journal article can be ordered from
http://www.elsevier. ... me/115/bibliographic
Access Statistics for this article
European Management Journal is currently edited by Michael Haenlein
More articles in European Management Journal from Elsevier
Bibliographic data for series maintained by Haili He ().