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High-performance work systems in foreign subsidiaries of American multinationals: An institutional model

Author

Listed:
  • John J Lawler

    (School of Labor and Employment Relations, University of Illinois at Urbana-Champaign, USA)

  • Shyh-jer Chen

    (Institute of Human Resource Management, National Sun Yat-sen University, Taiwan)

  • Pei-Chuan Wu

    (School of Business, National University of Singapore)

  • Johngseok Bae

    (Business School, Korea University, Seoul, Korea)

  • Bing Bai

    (School of Business, University of Redlands, USA)

Abstract

This study examines the implementation of high-performance work systems (HPWSs) in 217 subsidiaries of American-based multinational enterprises operating in 14 countries in Asia, Africa, and Europe. Specifically, this paper explores the effect of host-country institutional factors on the extent of HPWS implementation in subsidiaries, and focuses on “strong agency” influences and dominance effects. The proposed model was more successful in explaining the effect of HPWSs on rank-and-file employees than on managers. Of particular interest is the strong positive association between host-country economic growth and HPWS implementation, which suggests a possible cyclical sensitivity of subsidiaries regarding human resource management strategy.

Suggested Citation

  • John J Lawler & Shyh-jer Chen & Pei-Chuan Wu & Johngseok Bae & Bing Bai, 2011. "High-performance work systems in foreign subsidiaries of American multinationals: An institutional model," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 42(2), pages 202-220, February.
    • Handle: RePEc:pal:jintbs:v:42:y:2011:i:2:p:202-220
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    Cited by:

    1. Yang, Wei & Meyer, Klaus E., 2019. "How does ownership influence business growth? A competitive dynamics perspective," International Business Review, Elsevier, vol. 28(5), pages 1-1.
    2. Fan, Di & Wu, Sihong & Su, Yiyi & Li, Yi, 2022. "Managing expatriates to achieve mutual benefits: An integrative model and analysis," Journal of International Management, Elsevier, vol. 28(2).
    3. Dheer, Ratan J.S. & Li, Mingxiang & Treviño, Len J., 2019. "An integrative approach to the gender gap in entrepreneurship across nations," Journal of World Business, Elsevier, vol. 54(6), pages 1-1.
    4. Chuang, Chih-Hsun & Chen, Shyh-jer & Chuang, Ching-Wen, 2013. "Human resource management practices and organizational social capital: The role of industrial characteristics," Journal of Business Research, Elsevier, vol. 66(5), pages 678-687.
    5. Fortwengel, Johann & Jackson, Gregory, 2016. "Legitimizing the apprenticeship practice in a distant environment: Institutional entrepreneurship through inter-organizational networks," Journal of World Business, Elsevier, vol. 51(6), pages 895-909.
    6. Ruey-Jer “Bryan” Jean & Daekwan Kim & Kevin Zheng Zhou & S. Tamer Cavusgil, 2021. "E-platform use and exporting in the context of Alibaba: A signaling theory perspective," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 52(8), pages 1501-1528, October.
    7. Bordunos, A. & Kosheleva, S., 2016. "High Involvement Work System from organizational and individual perspective," Working Papers 6445, Graduate School of Management, St. Petersburg State University.
    8. Deepak K. Datta & Martina Musteen & Dynah A. Basuil, 2015. "Influence of Managerial Ownership and Compensation Structure on Establishment Mode Choice: The Moderating Role of Host Country Political Risk," Management International Review, Springer, vol. 55(5), pages 593-613, October.
    9. Irene Chow & Stephen Teo & Irene Chew, 2013. "HRM systems and firm performance: The mediation role of strategic orientation," Asia Pacific Journal of Management, Springer, vol. 30(1), pages 53-72, March.
    10. Bryan Jean, Ruey-Jer & Kim, Daekwan & Sinkovics, Rudolf R. & Cavusgil, Erin, 2024. "The effect of business model innovation on SMEs’ international performance: The contingent roles of foreign institutional voids and entrepreneurial orientation," Journal of Business Research, Elsevier, vol. 175(C).
    11. Debmalya Mukherjee & Saumyaranjan Sahoo & Satish Kumar, 2023. "Two Decades of International Business and International Management Scholarship on Africa: A Review and Future Directions," Management International Review, Springer, vol. 63(6), pages 863-909, December.
    12. Elaine Farndale & Chris Brewster & Paul Ligthart & Erik Poutsma, 2017. "The effects of market economy type and foreign MNE subsidiaries on the convergence and divergence of HRM," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 48(9), pages 1065-1086, December.
    13. Kaifeng Jiang & Wei Shi & Xin Wen, 2022. "Implications of frames of reference for strategic human resource management research: Opportunities and challenges," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 61(3), pages 303-313, July.
    14. Mingqiong Zhang & David Fan & Cherrie Zhu, 2014. "High-Performance Work Systems, Corporate Social Performance and Employee Outcomes: Exploring the Missing Links," Journal of Business Ethics, Springer, vol. 120(3), pages 423-435, March.
    15. Diep Thi Ngoc Nguyen & Stephen T. T. Teo & Marcus Ho, 2018. "Development of human resource management in Vietnam: A semantic analysis," Asia Pacific Journal of Management, Springer, vol. 35(1), pages 241-284, March.
    16. Ilgaz Arikan & Oded Shenkar, 2022. "Neglected elements: What we should cover more of in international business research," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 53(7), pages 1484-1507, September.
    17. Stav Fainshmidt & Amir Pezeshkan & M. Lance Frazier & Anil Nair & Edward Markowski, 2016. "Dynamic Capabilities and Organizational Performance: A Meta-Analytic Evaluation and Extension," Journal of Management Studies, Wiley Blackwell, vol. 53(8), pages 1348-1380, December.
    18. Paul K. Edwards & Rocío Sánchez-Mangas & Olga Tregaskis & Christian Lévesque & Anthony McDonnell & Javier Quintanilla, 2013. "Human Resource Management Practices in the Multinational Company: A Test of System, Societal, and Dominance Effects," ILR Review, Cornell University, ILR School, vol. 66(3), pages 588-617, May.

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