Ingmar Björkman

The effect of human resource management practices on firm performance in Russia

Based on 101 foreign firms operating in Russia, the effect of human resource management (HRM) on firm performance in Russia is investigated. This is accomplished by developing and testing a model including HR outcomes (motivation, retention development) as a mediating variable between HRM practices and firm performance. Our study provides some support for the use of HRM outcomes as a mediating variable between HRM practices and firm performance. The results also indicate that non-technical training and high salaries will have a positive impact on HR outcomes managers while job security is the most important predictor of HR outcomes for employees. Thus, our study provides support for the importance of including both managers and non-managers in the same study, but treating them separately. In addition, results indicate a direct positive relationship between managerial promotions based on merit and firm performance for managers and job security and performance non-managers.

Handbook of research in international human resource management

Contents: Part I: The Role of International Human Resource Management Part II: Research on Global Staffing, Performance Management and Leadership Development Part III: Research on International Assignments Part IV: Research on International Teams, Alliances, and Mergers and Acquisitions Part V: Theoretical Perspectives on International Human Resource Management Index Contributors: A. Bird, I. Bjorkman, J. Bonache, C. Brewster, P. Caligiuri, S. Canney Davison, W.F. Cascio, D. Collings, H. de Cieri, J. Dietz, P.J. Dowling, E. Farndale, M. Festing, J.L. Gibbs, P.K. Goulet, H. Harris, M. Harvey, J. Hearn, K. Jonsen, M.B. Lazarova, C.A. Lengnick-Hall, M.L. Lengnick-Hall, M. Maznevski, M. Mendenhall, B.D. Metcalfe, S.S. Morris, M.M. Novicevic, A. Osland, J.S. Osland, J. Paauwe, T. Peltonen, L.-E. Petersen, R. Piekkari, P. Rosenzweig, R. Schuler, D.M. Schweiger, H. Scullion, S.A. Snell, P. Sparrow, G. Stahl, P. Stiles, I. Tarique, D.C. Thomas, D.E. Welch, E. Whitener, V. Worm, P.M. Wright

The Impact of Organizational and National Cultural Differences on Social Conflict and Knowledge Transfer in International Acquisitions

The purpose of this paper is to elucidate the effects of organizational and national cultural differences on international acquisitions. We argue that cultural differences prompt social identity building that leads to ‘us versus them’ thinking and thereby creates the potential for social conflict. We also maintain that the same cultural differences can contribute to learning in terms of knowledge transfer. We develop a structural equation model to test these hypothesized effects on a sample of related international acquisitions. Our analysis shows that cultural differences at the organizational level are positively associated with social conflict, but that national cultural differences can decrease social conflict. Furthermore, both organizational and national cultural differences are positively associated with knowledge transfer. This analysis shows the importance of disentangling the various effects that cultural differences have on international acquisitions. It also suggests that national cultural differences are less of a problem in international acquisitions than is usually assumed.

Nordic International Business Research. A Review of Its Development

Abstract This article identifies the specific characteristics of Nordic international business research by analyzing how Nordic researchers over time have perceived and conceptualized their research object, “the international firm.” Their perceptions about essential features of the international firm are arguably reflected in their theoretical and empirical work on the internationalization of the firm and the management of the international firm.

HRM practices in China-Western joint ventures: MNC standardization versus localization

In recent years, multinational corporations have become increasingly ascendant in the world economy. The HRM strategies that these corporations adopt may blend global integration with local responsiveness. This paper examines the compatibility between MNC standardization and localization of different HRM practices in a sample of Sino-Western joint ventures. The findings indicate that various HRM practices have different responses to MNC standaridization and localization.

When in Rome ... ?:Human resource management and the performance of foreign firms operating in India

Purpose: The purpose of the paper is to examine the kind of HRM practices being implemented by overseas firms in their Indian subsidiaries and also to analyze the linkage between HRM practices and organizational performance. Design/methodology/approach: The paper utilizes a mixture of both quantitative and qualitative techniques via personal interviews in 76 subsidiaries. Findings: The results show that while the introduction of HRM practices from the foreign parent organization is negatively associated with performance, local adaption of HRM practices is positively related with the performance of foreign firms operating in India. Research limitations/implications: The main limitations include data being collected by only one respondent from each firm, and the relatively small sample size. Practical implications: The key message for practitioners is that HRM systems do improve organizational performance in the Indian subsidiaries of foreign firms, and an emphasis on the localization of HRM practices can further contribute in this regard. Originality/value: This is perhaps the very first investigation of its kind in the Indian context.

The personal characteristics of the successful expatriate

Purpose – When critically reviewing the empirical research on the relationships between personal characteristics and successful foreign assignments it is revealed that the extant empirical research suffers from several limitations. The aim of this article is to shed additional light into the relationship between expatriate personal characteristics and job performance, circumventing the identified limitations of cross‐sectional design, use of self‐evaluations and inappropriate measures of success.Design/methodology/approach – The empirical study is based on longitudinal data. Trained psychologists carried out a psychological assessment of the expatriate prior to the assignment. Performance data were provided by both the expatriate and the expatriates superior.Findings – The obtained results support the importance of communicational ability for expatriate success, whereas stress tolerance and relational ability were not found to be significantly related to success.Research limitations/implications – The st...

The effect of human resource management practices on Japanese MNC subsidiary performance: a partial mediating model

The purpose of this study is to examine the relationship between a bundle or system of human resource (HR) practices and firm performance and the processes through which these HR practices affect organizational outcomes. Using a sample of fifty-two Japanese multinational corporation subsidiaries operating in the United States and Russia, we examine the impact of HR systems on firm performance mediated by employee skills, attitudes and motivation in an attempt to shed light on the so-called ‘black box’ through which HR practices lead to firm performance. The results support the notion that employee skills, attitudes and behaviours play a mediating role between HR systems and firm outcomes in multinational corporations. These findings illustrate the varying impact of synergistic systems of HR practices and their generalizability in different national contexts.

Language Fluency, Socialization and Inter-Unit Relationships in Chinese and Finnish Subsidiaries

High levels of trust and shared vision contribute to collaborative behaviour among units belonging to the same corporation. We examined the relationship of language fluency and socialization mechanisms to inter-unit shared vision and trustworthiness, using a sample of 310 inter-unit relationships involving subsidiaries of multinational corporations located in China and Finland. Results show that language fluency related significantly to shared vision and perceived trustworthiness in both the Chinese and Finnish subsidiaries. We also found socialization mechanisms to have a positive relationship to shared vision in the Chinese but not the Finnish sample, and no significant relationship to perceived trustworthiness in either sample. The interaction effects of language fluency and socialization mechanisms produced different results in the Chinese and Finnish samples. The study confirmed the importance of language fluency for inter-unit relationships and offered several suggestions for future research.

Outsiders in the Middle Kingdom: Expatriate managers in Chinese-Western joint ventures

Recently, there has been a tremendous boom in foreign direct investments in the Peoples Republic of China, most of which has been in Sino-foreign joint ventures. But despite many success stories, most expatriate foreign managers experience frustration. Ingmar Bjorkman and Annette Schaap present the results of a study of human resource issues related to the use of expatriates in Sino-Western joint ventures using data from 36 such undertakings. The authors then suggest some practical ways of best handling issues relating to the use of expatriates in China.