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Managing localization of human resources in the PRC: a practical model

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  • Wong, Chi-Sum
  • Law, Kenneth S.

Abstract

The localization of top management positions is an important objective for many Transnational Corporations (TNCs). Despite its importance, there is little systematic discussion of how the localization process should be managed. Based on a review of related literature and in-depth interviews with six TNCs in the PRC, we developed a three-stage model of the localization process. In this article, we use that model to describe the challenges that TNCs face when localizing top management positions in the People's Republic of China.

Suggested Citation

  • Wong, Chi-Sum & Law, Kenneth S., 1999. "Managing localization of human resources in the PRC: a practical model," Journal of World Business, Elsevier, vol. 34(1), pages 26-40, April.
    • Handle: RePEc:eee:worbus:v:34:y:1999:i:1:p:26-40
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    References listed on IDEAS

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    1. Peter B Smith & Mark F Peterson & Zhong Ming Wang, 1996. "The Manager as Mediator of Alternative Meanings: A pilot Study from China, The USA and U.K," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 27(1), pages 115-137, March.
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    1. Luo, Yadong, 2007. "From foreign investors to strategic insiders: Shifting parameters, prescriptions and paradigms for MNCs in China," Journal of World Business, Elsevier, vol. 42(1), pages 14-34, March.
    2. Yadong Luo & Huan Zhang & Juan Bu, 2019. "Developed country MNEs investing in developing economies: Progress and prospect," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 50(4), pages 633-667, June.
    3. Bruno Amann & Jacques Jaussaud & Johannes Schaaper, 2020. "The bridging role of regional headquarters. Multinational companies in the Asia-Pacific region," Post-Print hal-03264624, HAL.
    4. Hitotsuyanagi-Hansel, Azusa & Froese, Fabian Jintae & Pak, Yong Suhk, 2016. "Lessening the divide in foreign subsidiaries: The influence of localization on the organizational commitment and turnover intention of host country nationals," International Business Review, Elsevier, vol. 25(2), pages 569-578.
    5. Jing Yang & Frank Tipton & Jiatao Li, 2011. "A review of foreign business management in China," Asia Pacific Journal of Management, Springer, vol. 28(3), pages 627-659, September.
    6. Wilkinson, Timothy J. & Peng, George Z. & Brouthers, Lance Eliot & Beamish, Paul W., 2008. "The diminishing effect of cultural distance on subsidiary control," Journal of International Management, Elsevier, vol. 14(2), pages 93-107, June.
    7. Zhu, Cherrie Jiuhua & Cooper, Brian K. & Fan, Di & De Cieri, Helen, 2013. "HR practices from the perspective of managers and employees in multinational enterprises in China: Alignment issues and implications," Journal of World Business, Elsevier, vol. 48(2), pages 241-250.
    8. Simon Lam & Joseph Yeung, 2010. "Staff localization and environmental uncertainty on firm performance in China," Asia Pacific Journal of Management, Springer, vol. 27(4), pages 677-695, December.
    9. APJM Editorial Team, 2020. "Making contributions beyond theory-based studies: From the APJM editorial team," Asia Pacific Journal of Management, Springer, vol. 37(1), pages 1-6, March.
    10. Gamble, Jos, 2006. "Introducing Western-style HRM practices to China: Shopfloor perceptions in a British multinational," Journal of World Business, Elsevier, vol. 41(4), pages 328-343, December.
    11. Wong, Chi-Sum & Wong, Yui-tim & Hui, Chun & Law, Kenneth S., 2001. "The significant role of Chinese employees' organizational commitment: implications for managing employees in Chinese societies," Journal of World Business, Elsevier, vol. 36(3), pages 326-340, October.
    12. Li, Julie Juan & Zheng Zhou, Kevin & Lam, Simon S.K. & Tse, David K., 2006. "Active trust development of local senior managers in international subsidiaries," Journal of Business Research, Elsevier, vol. 59(1), pages 73-80, January.
    13. Mahamat Abdellatif & Bruno Amann & Jacques Jaussaud, 2010. "International Firm Strategies: Is Cultural Distance a Main Determinant?," Transition Studies Review, Springer;Central Eastern European University Network (CEEUN), vol. 17(4), pages 611-623, December.
    14. Jooyoung Kwak & Liyue Zhang, 2011. "Does China Love Hollywood? An Empirical Study on the Determinants of the Box-Office Performance of the Foreign Films in China," International Area Studies Review, Center for International Area Studies, Hankuk University of Foreign Studies, vol. 14(2), pages 115-140, June.
    15. Marina Anna Schmitz & Fabian Jintae Froese & Anna Katharina Bader, 2018. "Organizational cynicism in multinational corporations in China," Asia Pacific Business Review, Taylor & Francis Journals, vol. 24(5), pages 620-637, October.
    16. Guvenli, Turgut & Sanyal, Rajib, 2003. "Perception and management of legal issues in China by US firms," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 32(2), pages 161-181, May.
    17. Jack Pegram & Gioia Falcone & Athanasios Kolios, 2018. "A Review of Job Role Localization in the Oil and Gas Industry," Energies, MDPI, vol. 11(10), pages 1-18, October.
    18. 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.
    19. Wang, Pien & Tong, Tony W. & Koh, Chun Peng, 2004. "An integrated model of knowledge transfer from MNC parent to China subsidiary," Journal of World Business, Elsevier, vol. 39(2), pages 168-182, May.
    20. Li, Chun-Sheng Joseph & Lee, Po-Yen & Liou, James J.H., 2018. "Exploring the staff localization of Taiwanese MNC subsidiaries in China: Effects of size, operation time, location, and local-market focus," Journal of Business Research, Elsevier, vol. 88(C), pages 20-27.
    21. Li, Julie Juan, 2008. "How to retain local senior managers in international joint ventures: The effects of alliance relationship characteristics," Journal of Business Research, Elsevier, vol. 61(9), pages 986-994, September.

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