Institutional theory and MNC subsidiary HRM practices: evidence from a three-country study

Ingmar Björkman, Carl F Fey and Hyeon Jeong Park
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Ingmar Björkman: [1] Department of Management and Organisation, Swedish School of Economics, Helsinki, Finland [2] INSEAD Euro-Asia and Comparative Research Centre, Fontainebleau, Texas, USA
Carl F Fey: [1] 3Stockholm School of Economics, Stockholm, Sweden [2] 4Stockholm School of Economics, St Petersburg, Russia
Hyeon Jeong Park: Department of Managerial Sciences, J. Mack Robinson College of Business, Georgia State University, Atlanta, GA, USA

Journal of International Business Studies, 2007, vol. 38, issue 3, 430-446

Abstract: This study sets out to explore human resource management (HRM) practices in multinational corporation (MNC) subsidiaries within an institutional theory framework. Based on a sample of 158 subsidiaries of MNCs operating in the United States, Russia and Finland, the paper examines factors hypothesised to influence the HRM practices adapted in US, Japanese and European MNC subsidiaries located in Russia, Finland and the US. The results indicate significant differences in HRM practices used across host countries. Both the status of the subsidiary human resource department and the degree to which the subsidiary was involved in knowledge transfer with other parts of the MNC had a significant impact on the selection of HRM practices. Journal of International Business Studies (2007) 38, 430–446. doi:10.1057/palgrave.jibs.8400267

Date: 2007
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