Modes of integration of human resource management practices in multinationals

Abstract

Purpose – The purpose of this paper is to examine variations in the use of international integration mechanisms across individual human resource management (HRM) practices in MNCs. Design/methodology/approach – Drawing upon data from a sample of over 450 MNC subsidiaries located in Ireland and Spain and an ordinal regression methodology, several models were tested. Findings – The findings provide evidence that people, information and formalized-based mechanisms are positively related to the use of centralization-based integration processes. The results also demonstrate that the use of personal-based integration mechanisms is uniform across the suite of individual HRM practices among those MNCs where an international HRM committee is present, while the deployment of expatriates does not prove to be particularly significant in achieving integration across the range of HRM practices examined in the model. Information- and formalization-based mechanisms hold explanatory power in relation to performance appraisal systems and compensation practices. Research limitations/implications – Broadening the scope of the analysis the authors offer here, drawn from just two institutional environments, to a broader set of locations may contribute to future research in this area. Further analysis using longitudinal and quantitative methodologies may also prove important in unearthing integration patterns in HRM domain areas. Originality/value – This paper offers a comprehensive analysis of the preferred modes of integration across HRM practices in MNC subsidiaries located in two different institutional environments. The authors reveal how modes of integration vary for different HR domain areas and the authors provide explanations for this variation.