Multiculturals as strategic human capital resources in multinational enterprises
Multiculturals – individuals with notable cultural knowledge, skills, abilities, and other characteristics (KSAOs) – are widely assumed to contribute to MNE performance leading, ultimately, to global competitive advantages. We nuance this general belief by arguing that what matters for an MNE’s comp...
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Published in | Journal of international business studies Vol. 53; no. 1; pp. 95 - 125 |
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Main Authors | , |
Format | Journal Article |
Language | English |
Published |
London
Palgrave Macmillan UK
01.02.2022
Palgrave Macmillan |
Subjects | |
Online Access | Get full text |
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Abstract | Multiculturals – individuals with notable cultural knowledge, skills, abilities, and other characteristics (KSAOs) – are widely assumed to contribute to MNE performance leading, ultimately, to global competitive advantages. We nuance this general belief by arguing that what matters for an MNE’s competitive advantage is not the employment of multiculturals per se, but rather the MNE’s ability to transform multiculturals’ KSAOs into strategic human capital resources by creating complementarities between KSAOs and emergence-enabling factors. Using a 12-month in-depth ethnographic study over the span of two years in two MNEs, we identified five emergence-enabling factors that enable the transformation of multiculturals’ KSAOs into human capital resources and strategic human capital resources: (1) a global mindset, (2) a differentiated HR architecture, (3) the language policy and practices, (4) team diversity, and (5) multicultural team leadership. We suggested that a global mindset and differentiated HR architecture are emergence-enabling factors that enable the transformation of KSAOs into unit-level strategic human capital resources that are relevant for competitive advantage, while team diversity and multicultural team leadership are emergence-enabling factors that enable the transformation of KSAOs into unit-level human capital resources relevant for performance parity. Finally, the language policy and practices were relevant for both processes. |
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AbstractList | Multiculturals – individuals with notable cultural knowledge, skills, abilities, and other characteristics (KSAOs) – are widely assumed to contribute to MNE performance leading, ultimately, to global competitive advantages. We nuance this general belief by arguing that what matters for an MNE’s competitive advantage is not the employment of multiculturals per se, but rather the MNE’s ability to transform multiculturals’ KSAOs into strategic human capital resources by creating complementarities between KSAOs and emergence-enabling factors. Using a 12-month in-depth ethnographic study over the span of two years in two MNEs, we identified five emergence-enabling factors that enable the transformation of multiculturals’ KSAOs into human capital resources and strategic human capital resources: (1) a global mindset, (2) a differentiated HR architecture, (3) the language policy and practices, (4) team diversity, and (5) multicultural team leadership. We suggested that a global mindset and differentiated HR architecture are emergence-enabling factors that enable the transformation of KSAOs into unit-level strategic human capital resources that are relevant for competitive advantage, while team diversity and multicultural team leadership are emergence-enabling factors that enable the transformation of KSAOs into unit-level human capital resources relevant for performance parity. Finally, the language policy and practices were relevant for both processes. |
Author | Hong, Hae-Jung Minbaeva, Dana |
Author_xml | – sequence: 1 givenname: Hae-Jung surname: Hong fullname: Hong, Hae-Jung email: hae-jung.hong@neoma-bs.fr organization: People and Organizations Department, NEOMA Business School – sequence: 2 givenname: Dana surname: Minbaeva fullname: Minbaeva, Dana organization: Copenhagen Business School, King’s College London |
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CitedBy_id | crossref_primary_10_1016_j_ibusrev_2022_102097 crossref_primary_10_1057_s41267_023_00642_x crossref_primary_10_1057_s41267_023_00654_7 crossref_primary_10_1057_s41267_023_00658_3 crossref_primary_10_1177_14705958231155011 crossref_primary_10_1002_hrm_22194 crossref_primary_10_1108_JABES_05_2023_0113 crossref_primary_10_1016_j_ibusrev_2023_102139 |
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Keywords | competitive advantage multiculturals qualitative method strategic human capital ethnographic field study |
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SubjectTerms | Advantages Business and Management Business Strategy/Leadership Comparative advantage Competition Competitive advantage Employment Ethnography Human capital International Business Language policy Leadership Management Multiculturalism & pluralism Multinational corporations Organization Resources Teams Transformation |
Title | Multiculturals as strategic human capital resources in multinational enterprises |
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