The Adoption and Implementation of High-Performance Work System in Subsidiaries of Japanese Multinational Companies in Vietnam: a Qualitative Study

Tran Huy Phuong (), Dinh Thi Ngoc Quynh () and Nguyen The Kien ()
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Tran Huy Phuong: National Economics University Hanoi, Vietnam
Dinh Thi Ngoc Quynh: Foreign Trade University Hanoi, Vietnam
Nguyen The Kien: VNU University of Economics and Business, Vietnam National University, Hanoi, Vietnam

Organizacija, 2022, vol. 55, issue 1, 35-49

Abstract: Background and purpose: Managing human resource in foreign subsidiaries of Multinational Companies (MNCs) has been a challenging task due to the cultural diversity. High Performance Work System (HPWS) has been adopted by headquarters of MNCs in their subsidiaries as a form of control. The current research aims to explore the adoption and implementation of HPWS in subsidiaries of Japanese MNCs in Vietnam. Design/Methodology/Approach: A qualitative research design was conducted with data collected from semi-structured in-depth interviews with 33 managers working in 11 subsidiaries of Japanese MNC in Vietnam. Content analysis was used to analyze the data. Results: The results suggested that although HPWS was not fully implemented in these establishments, ability enhancing, motivation enhancing and opportunity enhancing bundle of HPWS were adopted to a varying extent. In addition, HPWS was adopted as a reactive response rather than a strategic choice. Finally, cost-benefit consideration may provide explanation for the non-systematic implementation of HPWS in affiliations of Japanese MNCs in Vietnam. Conclusion: The research provides some evidences to support the best-fit approach to HPWS adoption and implementation. Although HPWS has the potential to improve organizational performance, it must be internally aligned with the context of the organization.

Keywords: High performance work system; Adoption; Implementation; Subsidiaries; Japanese multinational companies; Vietnam (search for similar items in EconPapers)
Date: 2022
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Persistent link: https://EconPapers.repec.org/RePEc:vrs:organi:v:55:y:2022:i:1:p:35-49:n:2

DOI: 10.2478/orga-2022-0003

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