A multi-level framework for understanding global talent management systems for high talent expatriates within and across subsidiaries of MNEs

Purpose - Researchers and practitioners are interested in developing frameworks that can improve the understanding of the emerging field of global talent management (GTM) within and across the subsidiaries of multinational enterprises (MNEs). A few studies have proposed such frameworks but only implicitly include constructs at different levels of analysis. This paper is a step toward bridging the gap. Grounded in multi-level theory, international human resources management (IHRM) frameworks, and the ability-motivation-opportunity model, the purpose of this paper is to develop a multi-level framework that describes the processes through which antecedents at four levels of analysis affect a subsidiary’s GTM system, which in turn directly affects outcomes at three levels of analysis. Design/methodology/approach - This paper develops a multi-level framework that describes the processes through which antecedents at four levels of analysis affect a subsidiary’s GTM system. Along with including four levels of analysis and highlighting cross-level interactions in our proposed multi-level framework, several testable propositions are offered. Findings - The framework developed in this paper depicts the causal relationship between the subsidiary IHRM strategy (subsidiary level) and subsidiary GTM system (subsidiary level), and the several moderating variables that specify conditions under which the subsidiary IHRM Strategy affects a subsidiary GTM system. The moderator variables include national culture distance (country level), MNE headquarters (HQ) orientation (MNE HQ level), and the required dynamic cross-cultural competencies (expatriate level). In addition, the framework shows the outcomes of a subsidiary’s GTM system across three levels: knowledge transfer (MNE HQ level), localization (subsidiary level), and cross-cultural learning (expatriate level). In the context of multi-level analyses (the authors discuss this next), the framework shows several top-down processes (e.g.P2,P4andP5) and several bottom-up processes (e.g.P3andP7). Research limitations/implications - The proposed multi-level framework describes important antecedents and outcomes of a subsidiary’s GTM system, and proposes several propositions for future empirical and theoretical research that could be the focus of a systematic research program and agenda on GTM in subsidiaries. In addition, the proposed framework enables us to advance the GTM literature by improving the understanding of and offering insights about the GTM system of a subsidiary, and specifically contribute to research in IHRM and GTM in a number of ways. Practical implications - Existing scholarly GTM frameworks used by practitioners do not take into account the multi-level complexities that exist when a subsidiary IHRM strategy may not align with the subsidiary GTM system. As such, both practitioners and researchers would benefit by adopting a multi-level framework that accounts for these complexities and how they interact with one another to influence the way subsidiaries manage their expatriate talent. Originality/value - By using multi-level theory to examine subsidiary GTM systems, the authors advance both the GTM literature and the IHRM literature. Overall, this paper attempts to shift the focus of each subsidiary’s GTM system to a broader, multi-level perspective and contribute to new theory building in GTM research, specifically in subsidiary GTM-MNE research and provide some thoughtful suggestions for HR practitioners wanting to enhance the effectiveness of their MNEs.