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


  • Fey, Carl

    (Dept. of Business Administration, Stockholm School of Economics)

  • Björkman, Ingmar

    () (Swedish School of Economics and INSEAD)


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 help a firm perform better. Further, different HRM practices for managerial and non-managerial employees are found to be significantly related with firm performance. However, only limited support is obtained for the hypothesized relationship between efforts at aligning HRM practices with firm strategy and subsidiary performance.

Suggested Citation

  • Fey, Carl & Björkman, Ingmar, 2000. "The Effect of Human Resource Management Practices on MNC Subsidiary Performance in Russia," SSE/EFI Working Paper Series in Business Administration 2000:6, Stockholm School of Economics.
  • Handle: RePEc:hhb:hastba:2000_006

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    References listed on IDEAS

    1. Shekshnia, Stanislav, 1998. "Western multinationals' human resource practices in Russia," European Management Journal, Elsevier, vol. 16(4), pages 460-465, August.
    2. Shekshnia, Stanislav, 1994. "Managing people in Russia: Challenges for foreign investors," European Management Journal, Elsevier, vol. 12(3), pages 298-305, September.
    3. Vikhanski, Oleg & Puffer, Sheila, 1993. "Management education and employee training at Moscow McDonald's," European Management Journal, Elsevier, vol. 11(1), pages 102-107, March.
    4. May, Ruth & Bormann Young, Carol & Ledgerwood, Donna, 1998. "Lessons from Russian human resource management experience," European Management Journal, Elsevier, vol. 16(4), pages 447-459, August.
    5. J Michael Geringer & Louis Hebert, 1991. "Measuring Performance of International Joint Ventures," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 22(2), pages 249-263, June.
    6. Puffer, Sheila M. & McCarthy, Daniel J. & Naumov, Alexander I., 1997. "Russian managers' beliefs about work: Beyond the stereotypes," Journal of World Business, Elsevier, vol. 32(3), pages 258-276, October.
    7. Puffer, Sheila M., 1997. "Soviet and American managers' reward allocations: A dependency approach," International Business Review, Elsevier, vol. 6(5), pages 453-476, October.
    8. Puffer, Sheila, 1993. "A riddle wrapped in an enigma: Demystifying Russian managerial motivation," European Management Journal, Elsevier, vol. 11(4), pages 473-480, December.
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    Cited by:

    1. Petra Andries & Dirk Czarnitzki, 2014. "Small firm innovation performance and employee involvement," Small Business Economics, Springer, vol. 43(1), pages 21-38, June.
    2. Igor B. Gurkov, 2014. "Human Resource Management In Russian Manufacturing Subsidiaries Of Multinational Corporations," HSE Working papers WP BRP 28/MAN/2014, National Research University Higher School of Economics.
    3. Sharda, Kirti, 2011. "Back to the Drawing Board: Exploring Gestalts of Work Design in BPO Firms," IIMA Working Papers WP2011-02-04, Indian Institute of Management Ahmedabad, Research and Publication Department.
    4. Katou Anastasia, 2008. "Innovation and Human Resource Management: the Greek Experience," Organizacija, De Gruyter Open, vol. 41(3), pages 81-90, May.
    5. 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.
    6. Steigenberger, Norbert, 2014. "Only a matter of chance? How firm performance measurement impacts study results," European Management Journal, Elsevier, vol. 32(1), pages 46-65.
    7. Roxana Wright, 2014. "Branding Paradigms in the Fast Moving Consumer Goods Industry," Research in Economics and Business: Central and Eastern Europe, Tallinn School of Economics and Business Administration, Tallinn University of Technology, vol. 6(2).
    8. Storey, D. J., 2002. "Education, training and development policies and practices in medium-sized companies in the UK: do they really influence firm performance?," Omega, Elsevier, vol. 30(4), pages 249-264, August.
    9. Latukha, M. & Veselova, A. & Selivanovskikh, L., 2015. "Talent management practices in emerging market firms: Research agenda," Working Papers 6428, Graduate School of Management, St. Petersburg State University.

    More about this item


    Human resource management; Russia; Performance;

    JEL classification:

    • M12 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Personnel Management; Executives; Executive Compensation

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