Ethnocentric HRM practices: evidence from Western MNEs in Ghana

Abstract

PurposeThis paper examines Western multinational enterprises’ (MNEs) application of ethnocentrism in human resource management (HRM) practices utilised in their subsidiaries in Ghana. The practices examined include recruitment and selection, training and development, performance management and rewards management.Design/methodologyThe paper draws on interviews with 13 managers and 24 employees as well as documentary analysis in 8 British, European and US MNEs in Ghana.FindingsThe findings indicate that weak institutions in the local context, coupled with the technologically and economically advanced nature of Western countries compared to Ghana, account for ethnocentric HRM practices in MNEs’ Ghanaian subsidiaries.Practical implicationsThe paper highlights that Ghanaian companies might learn from, and adapt, selected Western HRM practices to improve their competitiveness.Originality/valueUtilising institutional theory, the paper extends extant research on ethnocentrism in HRM practices of Western MNE subsidiaries in other developing economies to Ghana; one of the fastest growing African economies.