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Linking international adaptation strategy, immigrant effect, and performance: The case of home–host and cross-market scenario

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  • Chung, Henry F.L.
  • Rose, Ellen
  • Huang, Pei-how
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    Abstract

    Previous studies suggest that a proper fit between business strategy and human resource management can enhance a firm's financial performance. Building on prior findings, this study proposes that an ideal match could occur on the choice of international adaptation strategy and immigrant effect (IE). This match would have a significant effect on firms’ financial performance. The proposed framework is examined using the experience of 121 firms operating across the Greater China region in the home–host and cross-market scenarios. It is found that the extent of adaptation strategy is positively associated with the choice of IE in both home–host and cross-market scenarios and that IE has significant direct and indirect effects on market share and profitability in the cross-market scenario. This study proposes a new strategy–human resource management-performance framework. The findings established provide some implications for researchers and managers.

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    Bibliographic Info

    Article provided by Elsevier in its journal International Business Review.

    Volume (Year): 21 (2012)
    Issue (Month): 1 ()
    Pages: 40-58

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    Handle: RePEc:eee:iburev:v:21:y:2012:i:1:p:40-58

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    Web page: http://www.elsevier.com/wps/find/journaldescription.cws_home/133/description#description

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    Related research

    Keywords: Cross-market scenario; Home–host; Immigrant effect; Performance; Standardisation strategy;

    References

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    Cited by:
    1. Chung, Henry F.L. & Tung, Rosalie L., 2013. "Immigrant social networks and foreign entry: Australia and New Zealand firms in the European Union and Greater China," International Business Review, Elsevier, vol. 22(1), pages 18-31.

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