The Role of Institutional Logics in Shaping Sustainable Talent Management: A Comparative Study of Two South Korean Conglomerates

Abstract

This research examines the evolution of human resource management (HRM) practices within Samsung and Lotte, two major South Korean conglomerates. Both companies have been profoundly influenced by the Japanese management paradigm, especially in areas like seniority-based promotion rooted in Confucian values. Drawing from institutional theory, the study elucidates how similar economic trajectories in South Korea and Japan fostered comparable institutional logics and pressures in HRM. However, as organizations navigate institutional shifts, their responses and resulting HRM adaptations can diverge. Utilizing a comparative approach through the lens of the institutional logic theory, key findings unveil as follows: (1) Samsung and Lotte’s HR practices exhibit a strong Japanese influence, highlighting cultural/historical context’s importance. (2) Despite similar pressures, the conglomerates developed distinct HR practices attributed to differing institutional logics. (3) Institutional logics play a pivotal role in shaping HRM and influencing organizational behavior. (4) Organizations adapt HR practices in response to institutional complexities, leading to practice divergence. (5) The study extends institutional theory’s application in understanding organizations’ varied responses to similar pressures. (6) Findings offer HR professionals insights on tailoring strategies based on contextual understanding. The study extends the application of institutional theory in deciphering varied organizational responses. Practically, it provides HR professionals guidance on contextually appropriate HRM strategies. Companies across Asia can leverage these insights to anticipate HR practice shifts and align them with evolving institutional frameworks.