Hafiz Mirza

Host country specific factors and the transfer of human resource management practices in multinational companies

This paper concerns the transfer of human resource management (HRM) practices by multinational companies (MNCs) to their overseas subsidiaries. It investigates how factors originating from the cultural and institutional framework of the host country impact on this transfer. Using data collected from MNC subsidiaries located in Greece and local Greek firms, we examine the degree to which several HRM practices in MNC subsidiaries resemble local practices. Our empirical findings indicate that subsidiaries have adapted their HRM practices to a considerable extent, although some practices are more localised than others. Specifically, practices that do not fit well with Greek culture or are in contrast to employee regulations show a low level of transfer. On the other hand, our interviews revealed that significant cultural changes are underway and that the institutional environment is gradually getting more relaxed, leaving more room to manoeuvre for MNCs.

The effect of corporate-level organizational factors on the transfer of human resource management practices: European and US MNCs and their Greek subsidiaries

One of the central questions in the literature on MNCs is the extent to which their subsidiaries act and behave as local firms (local isomorphism) versus the extent to which their practices resemble those of the parent company or some other global standard (internal consistency). Drawing on the resource-based view and resource-dependency theory, this paper aims to provide an insight into the interplay of several corporate-level organizational factors that affect the transfer of HRM practices across borders. Data collected from 80 European and US multinationals with subsidiaries in Greece are used to test specific hypotheses. Our results indicate that the level of importance attached to HRM by the MNCs top management and international experience have the highest explanatory power for the transfer of HRM practices, while international competitive strategy, informal control and the presence of expatriates also have a marginally significant influence.

Human resource management in Greece Have the colours of culture faded away

This article investigates whether Human Resource Management (HRM) in Greece is maintaining its national character or whether it is converging towards a model that potentially clashes with the country’s traditional societal values. This issue fits in the wider convergence–divergence debate that has been the concern of many cross-cultural researchers. Using data collected from Greek firms and subsidiaries of multinationals (MNCs) located in Greece, we compare the two groups on specific HRM practices. The aim is to show how HRM practices of Greek firms differ from those of MNCs subsidiaries and examine the extent and the way these HRM practices reflect Greek national culture. Our empirical results indicate that HRM practices in Greek firms reflect national culture to a great extent. Moreover, they imply that in some areas MNC subsidiaries have realized a considerable degree of adaptation, embracing practices that are in line with the Greek cultural environment.

The Dynamics of Manufacturing Joint Ventures in Turkey and the Role of Industrial Groups

This article is based on an empirical study of West European, U.S. and Japanese MNCs which have established joint ventures with local companies in Turkey. This empirical study covers a survey of 47 multinational and 21 local private firms which are parents to joint ventures in Turkey. Specific attention is paid to joint venture establishment strategies, motivations for joint ventures, and the motives of local parent firms compared to foreign MNCs in entering such collaborative alliances. The paper also analyses the overall pattern of FDI and the specific characteristics of joint ventures within this overall pattern.

The Strategy of Pacific Asian Multinationals

The last decade has seen a proliferation of research on ‘Third World Multinationals’, ‘Multinationals of the South’, ‘Foreign Direct Investment from Developing Countries’. However, although some valiant attempts at synthesis have been made, this research remains fragmented and lacks a common focus.1 In some respects such a situation is desirable. Increasingly suitable theoretical vehicles and common objectives will emerge as the research field (and the phenomena) mature(s). But it is desirable to hasten this process wherever possible — and this is one of the aims of this article.

Regionalization, foreign direct investment and poverty reduction: Lessons from Vietnam in ASEAN

This article examines whether, and to what degree, Vietnam has benefited from foreign direct investment (FDI) since its entry into ASEAN in 1995. The investigation consists of an assessment of ‘halo’ and market creation effects, linkages into the regional and global value chain and the lessons learned from the experience of other ASEAN countries. There is little evidence that the halo or market effects have affected TNC entry into Vietnam. However, foreign subsidiaries in Vietnam are closely integrated into regional and global value chains and ASEAN-based TNCs are a very promising source for further investment into Vietnam, however this value-chain involvement has to be managed very carefully. On the lessons side, the analysis shows that development in most ASEAN economies is largely a scale effect (with nuances) and the Holy Grail of spillover effects has scarcely been glimpsed. Vietnam can learn valuable lessons from ASEAN countries such as Malaysia and Thailand, where direct effects (e.g. employment) and consumption multipliers are high, but value-chain multipliers and spillovers remain low.

The Case of the United Kingdom

This chapter examines the role of United Kingdom small and medium sized enterprises (SMEs) in transferring technology to developing countries. After a brief review of the scale of foreign direct investment by United Kingdom SMEs in section 9.1 (details of non-equity foreign involvement is not consistently reported), the chapter summarises the cases investigated and offers an overview of the findings (section 9.2). The concluding section is followed by an appendix which includes an analytical summary of the 12 United Kingdom technology suppliers interviewed. This structure differs from that of the other chapters, but the intention is to permit an understanding of the behaviour of each supplier as a complete entity.

Direct foreign investment in japan as a means of market entry: The case of European firms 1

Japan, one of the worlds largest and strongest economies, attracts a tiny level of inward direct investment. This neglect is particularly true of European multinationals. This article examines a sample of European companies which have Japanese manufacturing affiliates, to assess direct investment as a means of access to the Japanese market. It examines the objectives and strategies of entry and evaluates the outcome in terms of successful penetration of the Japanese market. The joint venture route is a preferred means of initial entry and the research allows evaluation of the advantages and disadvantages of this mode of entry to the Japanese market.

Foreign tourism in Greece: An economic analysis

Abstract Foreign exchange earnings are vital for developmental efforts, particularly in the industrial sector. However, Greeces visible exports alone do not generate sufficient income for such purposes, thus providing a strong justification for blending tourism into the countrys general economic development strategy. From a development perspective, foreign exchange earnings are only one aspect of the total economic picture; eg the development of an export industry has varying repercussions on income, employment and other economic activity. The extent of these effects will vary according to the linkages between industrial sectors. This article assesses the importance of tourism to the Greek economy in terms of its impact on foreign exchange earnings and the balance of payments. Tourisms contribution to gross domestic product, employment and other economic activity is also examined.

The Globalization of Business and East Asian Developing-Country Multinationals

The current global political economy can trace its origins back to the world economic crisis of the 1970s and a number of consequent ‘corporate survival strategies’ . As the discussion below will show, these strategies have, both intentionally and unintentionally, transformed the world economy to such an extent that it is now possible to glean the preliminary structures of a global, but regionalized world system of the twenty-first century.1 A specific manifestation of this process has been the ‘rise’ of East Asia. Despite the recent Asian financial crisis, this region will continue to constitute a significant and growing component of the world economic system. Moreover, in consequence, East Asian developing-country multinationals (EA-DCMs) will figure as a formidable force in the future, both regionally and - increasingly - globally. This chapter aims firstly to explain how EA-DCMs have been engendered2 by globalization (and its handmaiden regionaliza- tion; Mirza, 1998); secondly, to describe their principal dimensions and characteristics; thirdly, to analyse their strategy and behaviour, especially in a regional context; and, finally, suggest some further avenues for research and investigation.