Opening the black box of the relationship between HRM practices and firm performance: A comparison of MNE subsidiaries in the USA, Finland, and Russia

Carl F Fey, Sergey Morgulis-Yakushev, Hyeon Jeong Park and Ingmar Björkman
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Carl F Fey: [1] Institute of International Business, Stockholm School of Economics, Stockholm, Sweden[2] Stockholm School of Economics Russia, St Petersburg, Russia
Sergey Morgulis-Yakushev: [1] Institute of International Business, Stockholm School of Economics, Stockholm, Sweden[2] Stockholm School of Economics Russia, St Petersburg, Russia
Hyeon Jeong Park: J. Mack Robinson College of Business, Georgia State University, Atlanta, USA
Ingmar Björkman: Swedish School of Economics, Helsinki, Finland

Journal of International Business Studies, 2009, vol. 40, issue 4, 690-712

Abstract: This paper investigates the extent to which different human resource management (HRM) practices work better in different countries. We also try to open the black box between HRM and multinational enterprise (MNE) subsidiary performance by considering mechanisms through which HRM practices affect MNE subsidiary performance. The study utilizes a unique data set consisting of subsidiaries of 241 MNEs operating in Russia, USA, and Finland. In the partial least-square analysis used to examine our hypotheses, we demonstrate that different HRM practices are preferable in different countries, and that motivation and ability are important mediating variables in the HRM–MNE subsidiary performance relationship. Journal of International Business Studies (2009) 40, 690–712. doi:10.1057/jibs.2008.83

Date: 2009
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