IDEAS home Printed from https://ideas.repec.org/a/eee/jbrese/v108y2020icp476-486.html
   My bibliography  Save this article

Human resource management practices transferring from foreign firms to Russia: The case of MNCs subsidiaries

Author

Listed:
  • Latukha, Marina
  • Poór, József
  • Mitskevich, Ekaterina
  • Linge, Dmitry

Abstract

The paper investigates the relationship between cultural fit, state of institutional development, the headquarters–subsidiary relationship and choice of MNCs' strategy for transferring human resource management (HRM) practices through the sample of 21 Russian subsidiaries. The results propose that exportation strategy better suits MNCs that originate from culturally close countries that enter markets with a relatively developed institutional and business environment. Adaptation strategy is suitable for home countries that are culturally distant, while integration strategy appears to be universal and allows capturing the benefits and mitigating the drawbacks of other strategies. The paper also discusses the connection between the establishment mode, which serves as a formal operationalization of the headquarters (HQ)–subsidiary relationship, and knowledge flows. The result can be important for Central and Eastern Europe (CEE) countries and to support the decision-making process for MNCs considering entering this region.

Suggested Citation

  • Latukha, Marina & Poór, József & Mitskevich, Ekaterina & Linge, Dmitry, 2020. "Human resource management practices transferring from foreign firms to Russia: The case of MNCs subsidiaries," Journal of Business Research, Elsevier, vol. 108(C), pages 476-486.
    • Handle: RePEc:eee:jbrese:v:108:y:2020:i:c:p:476-486
    DOI: 10.1016/j.jbusres.2019.03.020
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0148296319301924
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.jbusres.2019.03.020?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Kostova, Tatiana & Marano, Valentina & Tallman, Stephen, 2016. "Headquarters–subsidiary relationships in MNCs: Fifty years of evolving research," Journal of World Business, Elsevier, vol. 51(1), pages 176-184.
    2. Jan Johanson & Jan-Erik Vahlne, 2009. "The Uppsala internationalization process model revisited: From liability of foreignness to liability of outsidership," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 40(9), pages 1411-1431, December.
    3. Smirnov, Sergej & Cheberko, Eugeniy, 2018. "Current Stage of Entrepreneurship Development in Russia From 2014 Up To 2017: Main Issues and Trends," 6th International OFEL Conference on Governance, Management and Entrepreneurship. New Business Models and Institutional Entrepreneurs: Leading Disruptive Change (Dubrovnik, 2018), in: 6th International OFEL Conference on Governance, Management and Entrepreneurship. New Business Models and Institutional Entrepreneurs: Leading Disrupt, pages 344-355, Governance Research and Development Centre (CIRU), Zagreb.
    4. Björkman, Ingmar & Smale, Adam & Sumelius, Jennie & Suutari, Vesa & Lu, Yuan, 2008. "Changes in institutional context and MNC operations in China: Subsidiary HRM practices in 1996 versus 2006," International Business Review, Elsevier, vol. 17(2), pages 146-158, April.
    5. Sidani, Yusuf & Al Ariss, Akram, 2014. "Institutional and corporate drivers of global talent management: Evidence from the Arab Gulf region," Journal of World Business, Elsevier, vol. 49(2), pages 215-224.
    6. Kwok Leung & Rabi S Bhagat & Nancy R Buchan & Miriam Erez & Cristina B Gibson, 2005. "Culture and international business: recent advances and their implications for future research," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 36(4), pages 357-378, July.
    7. Nana Yaw Oppong, 2017. "Exploring the importance of human resource activities-strategies alignments: Interactive brainstorming groups approach," Cogent Business & Management, Taylor & Francis Journals, vol. 4(1), pages 1273081-127, January.
    8. Lazarova, Mila & Peretz, Hilla & Fried, Yitzhak, 2017. "Locals know best? Subsidiary HR autonomy and subsidiary performance," Journal of World Business, Elsevier, vol. 52(1), pages 83-96.
    9. Ahlvik, Catarina & Smale, Adam & Sumelius, Jennie, 2016. "Aligning corporate transfer intentions and subsidiary HRM practice implementation in multinational corporations," Journal of World Business, Elsevier, vol. 51(3), pages 343-355.
    10. Peter J Buckley & L Jeremy Clegg & Adam R Cross & Xin Liu & Hinrich Voss & Ping Zheng, 2007. "The determinants of Chinese outward foreign direct investment," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 38(4), pages 499-518, July.
    11. Mike W Peng & Denis Y L Wang & Yi Jiang, 2008. "An institution-based view of international business strategy: a focus on emerging economies," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 39(5), pages 920-936, July.
    12. John H. Dunning & Sarianna M. Lundan, 2008. "Multinational Enterprises and the Global Economy, Second Edition," Books, Edward Elgar Publishing, number 3215.
    13. Hofstede, Geert, 2003. "What is culture? A reply to Baskerville," Accounting, Organizations and Society, Elsevier, vol. 28(7-8), pages 811-813.
    14. Lazarova, Mila & Tarique, Ibraiz, 2005. "Knowledge transfer upon repatriation," Journal of World Business, Elsevier, vol. 40(4), pages 361-373, November.
    15. Rajagopal, 2014. "The Human Factors," Palgrave Macmillan Books, in: Architecting Enterprise, chapter 9, pages 225-249, Palgrave Macmillan.
    16. Ahlvik, Catarina & Björkman, Ingmar, 2015. "Towards explaining subsidiary implementation, integration, and internalization of MNC headquarters HRM practices," International Business Review, Elsevier, vol. 24(3), pages 497-505.
    17. Edwards, Tony & Tempel, Anne, 2010. "Explaining variation in reverse diffusion of HR practices: Evidence from the German and British subsidiaries of American multinationals," Journal of World Business, Elsevier, vol. 45(1), pages 19-28, January.
    18. Zhi Shen & Francisco Puig, 2018. "Spatial Dependence of the FDI Entry Mode Decision: Empirical Evidence From Emerging Market Enterprises," Management International Review, Springer, vol. 58(1), pages 171-193, February.
    19. Puffer, Sheila M. & McCarthy, Daniel J., 2007. "Can Russia's state-managed, network capitalism be competitive?: Institutional pull versus institutional push," Journal of World Business, Elsevier, vol. 42(1), pages 1-13, March.
    20. Michailova, Snejina & Mustaffa, Zaidah, 2012. "Subsidiary knowledge flows in multinational corporations: Research accomplishments, gaps, and opportunities," Journal of World Business, Elsevier, vol. 47(3), pages 383-396.
    21. Bradley L Kirkman & Kevin B Lowe & Cristina B Gibson, 2017. "A retrospective on Culture’s Consequences: The 35-year journey," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 48(1), pages 12-29, January.
    22. Ingmar Björkman & Carl F Fey & Hyeon Jeong Park, 2007. "Institutional theory and MNC subsidiary HRM practices: evidence from a three-country study," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 38(3), pages 430-446, May.
    23. Sjoerd Beugelsdijk & Ram Mudambi, 2013. "MNEs as border-crossing multi-location enterprises: The role of discontinuities in geographic space," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 44(5), pages 413-426, June.
    24. Mansour Javidan & Robert J House & Peter W Dorfman & Paul J Hanges & Mary Sully de Luque, 2006. "Conceptualizing and measuring cultures and their consequences: a comparative review of GLOBE's and Hofstede's approaches," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 37(6), pages 897-914, November.
    25. Petrik Runst, 2013. "Post-Socialist Culture and Entrepreneurship," American Journal of Economics and Sociology, Wiley Blackwell, vol. 72(3), pages 593-626, July.
    26. Smale, Adam & Björkman, Ingmar & Sumelius, Jennie, 2013. "Examining the differential use of global integration mechanisms across HRM practices: Evidence from China," Journal of World Business, Elsevier, vol. 48(2), pages 232-240.
    27. Sjoerd Beugelsdijk & Tatiana Kostova & Vincent E. Kunst & Ettore Spadafora & Marc van Essen, 2018. "Cultural Distance and Firm Internationalization," Post-Print hal-02312065, HAL.
    28. Barbara Brenner, 2009. "Management Control in Central and Eastern European Subsidiaries," Palgrave Macmillan Books, Palgrave Macmillan, number 978-0-230-20174-3.
    29. Thite, Mohan & Wilkinson, Adrian & Shah, Dhara, 2012. "Internationalization and HRM strategies across subsidiaries in multinational corporations from emerging economies—A conceptual framework," Journal of World Business, Elsevier, vol. 47(2), pages 251-258.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Koveshnikov, Alexei & Dabija, Dan-Cristian & Inkpen, Andrew & Vătămănescu, Elena-Mădălina, 2022. "Not running out of steam after 30 years: The enduring relevance of Central and Eastern Europe for international management scholarship," Journal of International Management, Elsevier, vol. 28(3).
    2. Outila, Virpi & Fey, Carl F., 2022. "“We have performance appraisal every day and every hour”: Transferring performance management to Russia," Journal of International Management, Elsevier, vol. 28(2).
    3. Cooke, Fang Lee & Wang, Jingtian & Wood, Geoffrey, 2022. "A vulnerable victim or a tacit participant? Extending the field of multinationals and corruption research," International Business Review, Elsevier, vol. 31(1).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Fuentelsaz, Lucio & Garrido, Elisabet & Maicas, Juan P., 2020. "The effect of informal and formal institutions on foreign market entry selection and performance," Journal of International Management, Elsevier, vol. 26(2).
    2. Lazarova, Mila & Peretz, Hilla & Fried, Yitzhak, 2017. "Locals know best? Subsidiary HR autonomy and subsidiary performance," Journal of World Business, Elsevier, vol. 52(1), pages 83-96.
    3. Conti, Claudio Ramos & Parente, Ronaldo & de Vasconcelos, Flávio C., 2016. "When distance does not matter: Implications for Latin American multinationals," Journal of Business Research, Elsevier, vol. 69(6), pages 1980-1992.
    4. Klaus E. Meyer & Chengguang Li & Andreas P. J. Schotter, 0. "Managing the MNE subsidiary: Advancing a multi-level and dynamic research agenda," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 0, pages 1-39.
    5. Houldsworth, Elizabeth & Marra, Marianna & Brewster, Chris & Brookes, Michael & Wood, Geoffrey, 2021. "Performance appraisal and MNEs: The impact of different capitalist archetypes," International Business Review, Elsevier, vol. 30(5).
    6. Liu, Ting & Li, Xizhuo, 2022. "How Do MNCs Conduct Local Technological Innovation in a Host Country? An Examination From Subsidiaries' Perspective," Journal of International Management, Elsevier, vol. 28(3).
    7. Tatiana Kostova & Sjoerd Beugelsdijk & W. Richard Scott & Vincent E. Kunst & Chei Hwee Chua & Marc Essen, 2020. "The construct of institutional distance through the lens of different institutional perspectives: Review, analysis, and recommendations," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 51(4), pages 467-497, June.
    8. Khadija Straaten & Niccolò Pisani & Ans Kolk, 2020. "Unraveling the MNE wage premium," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 51(9), pages 1355-1390, December.
    9. Klaus E. Meyer & Chengguang Li & Andreas P. J. Schotter, 2020. "Managing the MNE subsidiary: Advancing a multi-level and dynamic research agenda," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 51(4), pages 538-576, June.
    10. Rosalie L Tung & Günter K Stahl, 2018. "The tortuous evolution of the role of culture in IB research: What we know, what we don’t know, and where we are headed," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 49(9), pages 1167-1189, December.
    11. Fortwengel, Johann & Gutierrez Huerter O, Gabriela & Kostova, Tatiana, 2023. "Three decades of research on practice transfer in multinational firms: Past contributions and future opportunities," Journal of World Business, Elsevier, vol. 58(3).
    12. Keilla Dayane Silva-Oliveira & Edson Keyso Miranda Kubo & Michael J. Morley & Rodrigo Médici Cândido, 2021. "Emerging Economy Inward and Outward Foreign Direct Investment: A Bibliometric and Thematic Content Analysis," Management International Review, Springer, vol. 61(5), pages 643-679, October.
    13. Choi, Yoona & Cui, Lin & Li, Yi & Tian, Xizhou, 2020. "Focused and ambidextrous catch-up strategies of emerging economy multinationals," International Business Review, Elsevier, vol. 29(6).
    14. Xie, En & Reddy, K.S. & Liang, Jie, 2017. "Country-specific determinants of cross-border mergers and acquisitions: A comprehensive review and future research directions," Journal of World Business, Elsevier, vol. 52(2), pages 127-183.
    15. Yakob, Ramsin & Nakamura, H. Richard & Ström, Patrik, 2018. "Chinese foreign acquisitions aimed for strategic asset-creation and innovation upgrading: The case of Geely and Volvo Cars," Technovation, Elsevier, vol. 70, pages 59-72.
    16. Shaheer, Noman & Kim, Kijong & Li, Sali, 2022. "Internationalization of Digital Innovations: A Rapidly Evolving Research Stream," Journal of International Management, Elsevier, vol. 28(4).
    17. Sarianna M Lundan, 2018. "From the editor: Engaging international business scholars with public policy issues," Journal of International Business Policy, Palgrave Macmillan, vol. 1(1), pages 1-11, June.
    18. Uzuegbunam, Ikenna & Geringer, J. Michael, 2021. "Culture, connectedness, and international adoption of disruptive innovation," Journal of International Management, Elsevier, vol. 27(1).
    19. Chensheng Xu & Feng Yao & Fan Zhang, 2015. "An Investigation of Confucius Institute’s Effects on China’s OFDI via Cultural Difference and Institutional Quality," Working Papers 15-45, Department of Economics, West Virginia University.
    20. Ayden, Yuksel & Tatoglu, Ekrem & Glaister, Keith W. & Demirbag, Mehmet, 2021. "Exploring the internationalization strategies of Turkish multinationals: A multi-perspective analysis," Journal of International Management, Elsevier, vol. 27(3).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:jbrese:v:108:y:2020:i:c:p:476-486. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/jbusres .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.