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Organization Development and Firm Performance: A Comparison of Multinational and Local Firms

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  • Chung-Ming Lau

    (The Chinese University of Hong Kong)

  • Hang-Yue Ngo

    (The Chinese University of Hong Kong)

Abstract

This study examines the usage and outcomes of organization development (OD) interventions in multinational firms. We test competing hypotheses derived from the cultural and institutional/isomorphic perspectives. Data from firms operating in Hong Kong show that Western firms (U.S. and European) are more receptive to OD interventions than Asian firms (local and Japanese), which supports the cultural explanation. However, the local isomorphism explanation is valid in predicting organizational outcomes that OD interventions have similar effects regardless of a firm's country origins. Hence, neither perspective alone is sufficient to explain both usage and outcomes. This implies that local adaptation of OD interventions is a complex issue for managing multinational firms.© 2001 JIBS. Journal of International Business Studies (2001) 32, 95–114

Suggested Citation

  • Chung-Ming Lau & Hang-Yue Ngo, 2001. "Organization Development and Firm Performance: A Comparison of Multinational and Local Firms," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 32(1), pages 95-114, March.
    • Handle: RePEc:pal:jintbs:v:32:y:2001:i:1:p:95-114
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    Citations

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    Cited by:

    1. Lau, Chung-Ming & Ngo, Hang-Yue, 2004. "The HR system, organizational culture, and product innovation," International Business Review, Elsevier, vol. 13(6), pages 685-703, December.
    2. Parnell, John A., 2021. "An Ounce of Prevention: What Promotes Crisis Readiness and How Does It Drive Firm Performance?," American Business Review, Pompea College of Business, University of New Haven, vol. 24(1), pages 90-113, May.
    3. Wetzels, Ruud W.H. & Klaus, Philipp “Phil†& Wetzels, Martin, 2023. "There is a secret to success: Linking customer experience management practices to profitability," Journal of Retailing and Consumer Services, Elsevier, vol. 73(C).
    4. Luis Alfonso Dau & Jiatao Li & Marjorie A. Lyles & Aya S. Chacar, 2022. "Informal institutions and the international strategy of MNEs: Effects of institutional effectiveness, convergence, and distance," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 53(6), pages 1257-1281, August.
    5. Yildiz, Harun Emre & Fey, Carl Felix, 2012. "The liability of foreignness reconsidered: New insights from the alternative research context of transforming economies," International Business Review, Elsevier, vol. 21(2), pages 269-280.
    6. Serafini, Giovanni O. & Szamosi, Leslie T., 2015. "Five star hotels of a Multinational Enterprise in countries of the transitional periphery: A case study in human resources management," International Business Review, Elsevier, vol. 24(6), pages 972-983.
    7. Mungiu-Pupazan Mariana Claudia, 2016. "The Role Of Organizational Culture In Organization Management," Annals - Economy Series, Constantin Brancusi University, Faculty of Economics, vol. 2, pages 102-105, December.
    8. Shanxing Gao & Kai Xu & Jianjun Yang, 2008. "Managerial ties, absorptive capacity, and innovation," Asia Pacific Journal of Management, Springer, vol. 25(3), pages 395-412, September.
    9. Beladi, Hamid & Dutta, Meghna & Kar, Saibal, 2016. "FDI and Business Internationalization of the Unorganized Sector: Evidence from Indian Manufacturing," World Development, Elsevier, vol. 83(C), pages 340-349.

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