The hidden layers of resistance to dominant HRM transfer: Evidence from Japanese management practice adoption in Indonesia

Abstract

While resistance to human resource management (HRM) practice transfers from multinationals has been widely researched in economically advanced countries, emerging economies are generally assumed to be institutionally more welcoming. This article contributes to debates on international HRM diffusion both by highlighting hitherto neglected arenas of host-country resistance and identifying the multiple levels at which this plays out. Specifically, this article examines the transfer of Japanese multinational corporations’ HRM practices into Indonesia. The study reveals that alongside apparently consensual micro-level ( organization) relations between home- and host-country management, important political power games are occurring at the meso-level ( subnational). These games involve competing notions of ‘best practice’ with host-country actors more powerful than deterministic models of diffusion would predict. The study shows how local actors seek to defend elements of the established Indonesian business system, while Japanese actors bypass host-country regulations by mobilizing corporate business associations. The findings extend current understanding of cross-border management practice transfer, highlighting contestation and negotiation at the meso-level.