High-investment HR values and firm performance among local firms and U.S. MNCs' subsidiaries in South Asia: a comparative study

Grounded in institutional theory, this study investigates the differential adoption and internalization of high-investment human resource (HR) values by local companies and by subsidiaries of US firms located throughout South Asia; and the impact of these HR values on firms' performance. In lin...

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Published inInternational journal of human resource management Vol. 27; no. 13; pp. 1426 - 1447
Main Authors Colakoglu, Saba, Allen, Matt, Miah, Khasro, Bird, Allan
Format Journal Article
LanguageEnglish
Published London Routledge 19.07.2016
Taylor & Francis LLC
Subjects
diffusion of HR practices
Financial performance
Foreign subsidiaries
HR in South Asia
HR values
Human resource management
institutional theory
MNC subsidiary
Multinational corporations
Organization theory
strategic HRM
Studies
transfer of HR practices
Values
United States > US
South Asia
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Abstract Grounded in institutional theory, this study investigates the differential adoption and internalization of high-investment human resource (HR) values by local companies and by subsidiaries of US firms located throughout South Asia; and the impact of these HR values on firms' performance. In line with our predictions, results suggest that US subsidiaries have a greater rate of adoption of high-investment HR values compared to local South Asian firms. Contrary to our predictions, however, both types of firms are similar in the level of internalization of their respective HR values. Finally, while greater levels of high-investment HR value adoption is associated with firm performance across the board, this relationship tends to be stronger for US MNCs' subsidiaries compared to local South Asian companies. Theoretical and practical implications for the transfer and diffusion of high-investment HR values in institutionally and culturally distant contexts are discussed.
AbstractList Grounded in institutional theory, this study investigates the differential adoption and internalization of high-investment human resource (HR) values by local companies and by subsidiaries of US firms located throughout South Asia; and the impact of these HR values on firms' performance. In line with our predictions, results suggest that US subsidiaries have a greater rate of adoption of high-investment HR values compared to local South Asian firms. Contrary to our predictions, however, both types of firms are similar in the level of internalization of their respective HR values. Finally, while greater levels of high-investment HR value adoption is associated with firm performance across the board, this relationship tends to be stronger for US MNCs' subsidiaries compared to local South Asian companies. Theoretical and practical implications for the transfer and diffusion of high-investment HR values in institutionally and culturally distant contexts are discussed. [web URL: http://www.tandfonline.com/doi/full/10.1080/09585192.2015.1075573]
Grounded in institutional theory, this study investigates the differential adoption and internalization of high-investment human resource (HR) values by local companies and by subsidiaries of US firms located throughout South Asia; and the impact of these HR values on firms' performance. In line with our predictions, results suggest that US subsidiaries have a greater rate of adoption of high-investment HR values compared to local South Asian firms. Contrary to our predictions, however, both types of firms are similar in the level of internalization of their respective HR values. Finally, while greater levels of high-investment HR value adoption is associated with firm performance across the board, this relationship tends to be stronger for US MNCs' subsidiaries compared to local South Asian companies. Theoretical and practical implications for the transfer and diffusion of high-investment HR values in institutionally and culturally distant contexts are discussed.
Author Colakoglu, Saba
Miah, Khasro
Bird, Allan
Allen, Matt
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  surname: Colakoglu
  fullname: Colakoglu, Saba
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Snippet Grounded in institutional theory, this study investigates the differential adoption and internalization of high-investment human resource (HR) values by local...
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SubjectTerms diffusion of HR practices
Financial performance
Foreign subsidiaries
HR in South Asia
HR values
Human resource management
institutional theory
MNC subsidiary
Multinational corporations
Organization theory
strategic HRM
Studies
transfer of HR practices
Values
Title High-investment HR values and firm performance among local firms and U.S. MNCs' subsidiaries in South Asia: a comparative study
URI https://www.tandfonline.com/doi/abs/10.1080/09585192.2015.1075573
https://www.proquest.com/docview/1785758389
Volume 27
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