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The Effect of Human Resource Management Practices on MNC Subsidiary Performance in Russia

Author

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  • Carl F Fey

    (Stockholm School of Economics in Saint Petersburg)

  • Ingmar Björkman

    (Swedish School of Economics)

Abstract

This study investigates the relationship between human resource management (HRM) and the performance of 101 foreign-owned subsidiaries in Russia. The study's results provide support for the assertion that investments in HRM practices can substantially assist a firm in improving performance. Further, different HRM practices for managerial and non-managerial employees are found to be significantly related to firm performance. Only limited support, however, is obtained for the hypothesized relationship between efforts at aligning HRM practices with firm strategy and subsidiary performance.© 2001 JIBS. Journal of International Business Studies (2001) 32, 59–75

Suggested Citation

  • Carl F Fey & Ingmar Björkman, 2001. "The Effect of Human Resource Management Practices on MNC Subsidiary Performance in Russia," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 32(1), pages 59-75, March.
  • Handle: RePEc:pal:jintbs:v:32:y:2001:i:1:p:59-75
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    Cited by:

    1. Koveshnikov, Alexei & Barner-Rasmussen, Wilhelm & Ehrnrooth, Mats & Mäkelä, Kristiina, 2012. "A framework of successful organizational practices in Western multinational companies operating in Russia," Journal of World Business, Elsevier, vol. 47(3), pages 371-382.
    2. Igor Gurkov, 2015. "Russian Manufacturing Subsidiaries of Western Multinational Corporations: Support from Parents and Cooperation with Sister-Subsidiaries," HSE Working papers WP BRP 37/MAN/2015, National Research University Higher School of Economics.
    3. Yun-Hwa Chiang & Chu-Chun Hsu & His-An Shih, 2015. "Experienced high performance work system, extroversion personality, and creativity performance," Asia Pacific Journal of Management, Springer, vol. 32(2), pages 531-549, June.
    4. Engelhard, Johann & Nägele, Joakim, 2003. "Organizational learning in subsidiaries of multinational companies in Russia," Journal of World Business, Elsevier, vol. 38(3), pages 262-277, August.
    5. repec:kap:asiapa:v:35:y:2018:i:1:d:10.1007_s10490-017-9522-3 is not listed on IDEAS
    6. Karhunen, Päivi, 2008. "Managing international business operations in a changing institutional context: The case of the St. Petersburg hotel industry," Journal of International Management, Elsevier, vol. 14(1), pages 28-45, March.
    7. repec:spr:manint:v:54:y:2014:i:3:d:10.1007_s11575-014-0204-9 is not listed on IDEAS
    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. Ari Jantunen & Kaisu Puumalainen & Sami Saarenketo & Kalevi Kyläheiko, 2005. "Entrepreneurial Orientation, Dynamic Capabilities and International Performance," Journal of International Entrepreneurship, Springer, vol. 3(3), pages 223-243, September.
    10. Muhammad Fareed & Mohd Faizal Mohd Isa & Wan Shakizah Wan Mohd Noor, 2017. "Human Resource Professionals’ Effectiveness, Organizational Culture and High Performance Work System Link: Evidence from Pakistan," International Review of Management and Marketing, Econjournals, vol. 7(1), pages 85-94.
    11. Malik, Tariq H. & Zhao, Yanzhi, 2013. "Cultural distance and its implication for the duration of the international alliance in a high technology sector," International Business Review, Elsevier, vol. 22(4), pages 699-712.
    12. Ahmed Imran Hunjra & Hassan Raza & Irfan Ullah Munir, 2014. "The Role of Employee Retention and Employee Productivity on the Performance of Oil & Gas Sector of Pakistan," International Journal of Economics and Empirical Research (IJEER), The Economics and Social Development Organization (TESDO), vol. 2(11), pages 449-453, November.
    13. Jiang, Fuming & Stening, Bruce W., 2013. "Do indigenous firms incur a liability of localness when operating in their home market? The case of China," Journal of World Business, Elsevier, vol. 48(4), pages 478-489.
    14. Almudena Cañibano & David Marsden, 2009. "Participation in Organisations: Economic Approaches," CEP Discussion Papers dp0945, Centre for Economic Performance, LSE.
    15. Jesper Edman, 2016. "Reconciling the advantages and liabilities of foreignness: Towards an identity-based framework," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 47(6), pages 674-694, August.
    16. Newburry, William & Zeira, Yoram & Yeheskel, Orly, 2003. "Autonomy and effectiveness of equity international joint ventures (IJVs) in China," International Business Review, Elsevier, vol. 12(4), pages 395-419, August.
    17. Mike Wright & Robert E. Hoskisson & Mike W. Peng, 2005. "Strategy Research in Emerging Economies: Challenging the Conventional Wisdom," Journal of Management Studies, Wiley Blackwell, vol. 42(1), pages 1-33, January.
    18. Saul Estrin & Delia Baghdasaryan & Klaus E. Meyer, 2009. "The Impact of Institutional and Human Resource Distance on International Entry Strategies," Journal of Management Studies, Wiley Blackwell, vol. 46(7), pages 1171-1196, November.
    19. Froese, Fabian Jintae & Pak, Yong Suhk & Chong, Li Choy, 2008. "Managing the human side of cross-border acquisitions in South Korea," Journal of World Business, Elsevier, vol. 43(1), pages 97-108, January.
    20. Klaus Uhlenbruck & Klaus E. Meyer & Michael A. Hitt, 2003. "Organizational Transformation in Transition Economies: Resource-based and Organizational Learning Perspectives," Journal of Management Studies, Wiley Blackwell, vol. 40(2), pages 257-282, March.

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