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1、High Performance Work System Practices in International Affiliates of American MNCs: Cultural and Institutional InfluencesJohn J. Lawler Institute of Industrial and Labor Relations University of Illinois at Urbana-ChampaignShyh-jer Chen Institute of Human Resource Management National Sun Yat-Sen Uni
2、versity Kaohsiung, TaiwanPei-Chuan Wu School of Business National University of SingaporeJohngseok Bae College of Business Administration Korea University Seoul, KoreaBing Bai Institute of Industrial and Labor Relations University of Illinois at Urbana-ChampaignHR System and Firm PerformanceCompetit
3、ive advantage from internal resources-Jeffrey Pfeffer (1994; 1998)Competitive advantage from external resources-Michael Porter (1980; 1985)One best way conclusion from Jeffrey Pfeffer2007/11/22博学之，审问之，慎寺之，明辩之，笃行之。精心整理，欢迎收藏HR Practices and Firm PerformanceCompetitive Advantage from Michael Porter, 19
4、80Several fundamental competitive forces that determine the ability of firms in an industry to earn above-normal returns:(產業的競爭優勢決定於下列幾個因素）the entry of new competitors（新競爭者的進入）the threat of substitutes（替代品的威脅）the bargaining power of buyers（買者的爭議力）the bargaining power of suppliers（供應商的爭議力）the rivalry
5、 among existing competitors（現有的對手） product and process technology（產品的技術）2007/11/23博学之，审问之，慎寺之，明辩之，笃行之。精心整理，欢迎收藏HR practices and Firm PerformanceCompetitive Advantage through People, Jeffrey Pfeffer, 1994Five top-performing firms from 1972 to 1992Plenum Publishing (15,689%)Circuit City (a video and a
6、ppliance retailer; 16,410%)Tyson Foods (a poultry producer; 18,118%)Wal-mart (a discount chain; 19,807%)Southwest Airline (21,775%)2007/11/24博学之，审问之，慎寺之，明辩之，笃行之。精心整理，欢迎收藏HR Practices and Firm PerformanceResource-based View (Barney, 1991)-Rare, non-substitutable, valuable, inimitable. -causal ambigui
7、ty: hard to understand the link between resource and competitiveness.-social complexity: culture, interpersonal relationship, company reputation.2007/11/25博学之，审问之，慎寺之，明辩之，笃行之。精心整理，欢迎收藏HR Practices and HR SystemThe content of HR practicesTheory-DrivenData-Driven (Cluster analysis, Exploratory factor
8、analysis)HR practicesformative or reflectiveHR architecture (Lepak & Snell, 1999) Managerial vs. non-managerialHR policy, practice, perception2007/11/26博学之，审问之，慎寺之，明辩之，笃行之。精心整理，欢迎收藏HR Strategies, Subsystems and Practices 2007/11/27博学之，审问之，慎寺之，明辩之，笃行之。精心整理，欢迎收藏HR System and Firm PerformanceMeasure of
9、 organizational performanceHR outcomes (turnover, absenteeism)Organizational outcomes (productivity, quality, service)Financial accounting outcomes (ROA, profitability)Capital market outcomes (stock price, growth, returns)2007/11/28博学之，审问之，慎寺之，明辩之，笃行之。精心整理，欢迎收藏Study purpose This study examined the r
10、ole of intra-organizational force (business strategy, structural features) versus host-country institutional and cultural forces Both above as determines of reliance on various dimensions of high performance work system (HPWS) utilization in international affiliates of S&P 500 companies.2007/11/29博学
11、之，审问之，慎寺之，明辩之，笃行之。精心整理，欢迎收藏HR System and Firm PerformanceAmerican Context vs. International ContextHuselid (1995)AMJ special issue in 1996IJHRMConvergence vs. DivergenceUniversalistic perspectiveContingency perspective2007/11/210博学之，审问之，慎寺之，明辩之，笃行之。精心整理，欢迎收藏HRM practices of MNC affiliatesHost-countr
12、y effectCultural factorsInstitutional factorsOrganizational factorsStrategic factorsCountry-of-origin effectCompany-of-origin effectDuality of International FirmsGlobal integrationEconomy of scale, serving global customers, competitive platforms, global brandingLocal responsivenessHost government re
13、gulations, customer needsTaylor et al. (1996) AMRExportive, adaptive, integrative model2007/11/212博学之，审问之，慎寺之，明辩之，笃行之。精心整理，欢迎收藏4 PerspectivesThe HR Strategy Perspective.The Cultural Perspective.Legal and Regulatory Environments (Institutional).Normative Constraint.2007/11/213博学之，审问之，慎寺之，明辩之，笃行之。精心整理
14、，欢迎收藏The HR Strategy PerspectiveFirms seek to achieve fit between organizational strategy and HR strategy. A parent company will influence an international affiliate to pursue a HPWS approach at the local level will depend on the overall commitment of the parent company to such an approach and the d
15、egree to which the affiliate and parent company are highly integrated.There are several arguments supporting this contemporary version of the convergence hypothesis (Rowley and Benson, 2002).2007/11/214博学之，审问之，慎寺之，明辩之，笃行之。精心整理，欢迎收藏Hypotheses-1/41a: HPWS practices will increase in an international af
16、filiate to the extent that the parent companys strategy stresses product differentiation.Hypothesis 1b: HPWS practices will decrease in an international affiliate to the extent that the parent companys strategy stresses cost leadership. Hypothesis 1c: HPWS practices will increase in an international
17、 affiliate the greater the outflow of knowledge from the affiliate to the parent company. Hypothesis 1d: HPWS practices will increase in an international affiliate the number of employees in the affiliate. Hypothesis 1e: HPWS practices will increase in an international affiliate the greater the muni
18、ficence of the external labor market.2007/11/215博学之，审问之，慎寺之，明辩之，笃行之。精心整理，欢迎收藏The Cultural PerspectiveFirms need transference to integrate HR policies and practices across international operations.Host country institutional and cultural environments are of only limited significance in shaping affilia
19、te HR policies and practices.Institutional theory is concerned environmental forces promote homogeneity among organizations. This is central to understanding tendencies of international affiliates to be like, or different than, indigenous companies (i.e., for HR systems to be more or less homogeneou
20、s).2007/11/216博学之，审问之，慎寺之，明辩之，笃行之。精心整理，欢迎收藏Hypotheses-2/4Hypothesis 2a: HPWS practices will decrease in an international affiliate the greater the value of Hofstedes power distance scalefor the host country.Hypothesis 2b: HPWS practices will increase in an international affiliate the greater the val
21、ue of Hofstedes individualism scale for the host country.Hypothesis 2c: HPWS practices will decrease in an international affiliate the greater the value of Hofstedes uncertainty avoidance scale for the host country.Hypothesis 2d: HPWS practices will increase in an international affiliate the greater
22、 the value of Hofstedes masculinity scale for the host country.2007/11/217博学之，审问之，慎寺之，明辩之，笃行之。精心整理，欢迎收藏Legal and Regulatory Environments.Much diversity in employment laws and regulations across countries reduce the ability of management at the affiliate level to implement changes and enforce policie
23、s consistent with HPWSs.The strength of law and comprehensive societal institutions is highly relevant to a firms HRM practices. Firms are less concerned about incomplete legal issues in handling business matters and are less worried about labor-related problems, they are not so highly restricted by
24、 the local political/legal environment.2007/11/218博学之，审问之，慎寺之，明辩之，笃行之。精心整理，欢迎收藏Hypotheses-3/4Hypothesis 3a: The utilization of HPWS practices will decrease in an international affiliate the more restrictive host country labor legislation.Hypothesis 3b: The utilization of HPWS practices will increase
25、 in aninternational affiliate the greater the level of state efficiency.2007/11/219博学之，审问之，慎寺之，明辩之，笃行之。精心整理，欢迎收藏Normative Constraint.Training and the transmission of professional standards of conduct as a principal mechanism in the propagation of normative controls through organizations and groups o
26、f related organizations (Scott, 1995).Much of the professional general management and HR training and education is rooted in the standard American curriculum.Labor union involvement affects beliefs and norms within the affiliate.Expatriate employees from the US parent company may serve as conduits f
27、or enhancing and expanding HPWS practices in the affiliate. 2007/11/220博学之，审问之，慎寺之，明辩之，笃行之。精心整理，欢迎收藏Hypotheses-4/4Hypothesis 4a: The utilization of HPWS practices will increase in an international affiliate as the ratio of HR professionals to total employees in the affiliate increases.Hypothesis 4b:
28、 The utilization of HPWS practices will decrease in an international affiliate as the percent of union members in the affiliate increases.Hypothesis 4c: The utilization of HPWS practices will increase in an international affiliate as the percent of American expatriate employees in the affiliate incr
29、eases.2007/11/221博学之，审问之，慎寺之，明辩之，笃行之。精心整理，欢迎收藏Research Methods- Sampling ProceduresCompanies were randomly selected from the Directory of American Firms Operating in Foreign Countries (2003)International subsidiaries of American MNCs. Production and service (P&S) 100-500 companies Six regions: East
30、Asia (China, Korea, Japan, Taiwan), Southeast Asia (Thailand, Vietnam, Singapore), South Asia (India), Africa (South Africa, Kenya), Western Europe (Germany, Italy), and Eastern Europe (Russia). 2007/11/222博学之，审问之，慎寺之，明辩之，笃行之。精心整理，欢迎收藏Research Methods- Data CollectionTwo different questionnaires:1.C
31、ompanys senior HR manager: focused on some general characteristics of the affiliates workforce and HR practices.2.Senior business manager in the affiliate: dealt with such issues as parent company-affiliate relationships, affiliate organizational performance, organizational business strategy, and re
32、lated issues.The questions and date collection procedures were reviewed and approved by the University of Illinois Institutional Review Board.A general protocol for data collection was developed for collaborators in each country,Separate sections -2 groups of employees: middle and upper managers and
33、 production and service (P&S) workers- dealing with training and development, staffing, compensation, and teamwork and empowerment.2007/11/223博学之，审问之，慎寺之，明辩之，笃行之。精心整理，欢迎收藏Table1 Number of Cases by Region and Host CountryEurope 25 Germany 9 Italy 10 Russia 6East Asia 101 China 18 Japan 12 Korea 43 Ta
34、iwan 28Southeast Asia 55 Southeast Asia Singapore 26 Southeast Asia Thailand 18 Southeast Asia Vietnam 11South Asia 18 India 18Africa 26 South Africa 26TOTAL 2252007/11/224博学之，审问之，慎寺之，明辩之，笃行之。精心整理，欢迎收藏2007/11/225博学之，审问之，慎寺之，明辩之，笃行之。精心整理，欢迎收藏2007/11/226博学之，审问之，慎寺之，明辩之，笃行之。精心整理，欢迎收藏Results2007/11/227博
35、学之，审问之，慎寺之，明辩之，笃行之。精心整理，欢迎收藏2007/11/228博学之，审问之，慎寺之，明辩之，笃行之。精心整理，欢迎收藏2007/11/229博学之，审问之，慎寺之，明辩之，笃行之。精心整理，欢迎收藏Summary of Findings2007/11/230博学之，审问之，慎寺之，明辩之，笃行之。精心整理，欢迎收藏Discussion and Implications Strategy and Organizational CharacteristicsThat Hypothesis 1c was supported: knowledge outflow from an af
36、filiate to its parent organization would indicate that the affiliate is a knowledge-generating entity and workplace empowerment. Labor market munificence (Hypothesis 1e) was positive: workplace empowerment is also reasonable indicates empowered increases in situations where an affiliate has a ready
37、supply of quality employees. Hypotheses 1c and 1e are relevant to understanding this one aspect of HPWS practices, but not to a general understanding across HR subsystems. 2007/11/231博学之，审问之，慎寺之，明辩之，笃行之。精心整理，欢迎收藏Discussion and Implications Host-Country National CultureUS MNCs HPWS are not specifical
38、ly linked to most of the internal organizational characters of international affiliates except for organizational size.Hypothesis 2a-2d suggest very much that cultural forces matter with regard to HPWS implementation.Masculinity was significant in five of the equations, but only Hypothesis 2d was po
39、sitive sign: more feminine cultures -cooperative nature of more feminine cultures -less likely to be interpersonally competitive -more likely to be motivated by the psychic rewards that also might accompany HPWS activities, might facilitate effective implementation.2007/11/232博学之，审问之，慎寺之，明辩之，笃行之。精心整
40、理，欢迎收藏Discussion and Implications Legal and Regulatory EnvironmentsState efficiency had only limited effects on HPWS utilization and the results contradicted Hypothesis 3b. Indicators of the host-countrys regulatory environment for labor were generally significant, not always positive sign (Hypothes
41、is 3a).That employment rigidity is negatively related to both variables indicates HPWS efforts are more apt to occur in situations where employers can adjust the total labor force2007/11/233博学之，审问之，慎寺之，明辩之，笃行之。精心整理，欢迎收藏Discussion and Implications Normative ConstraintsThe concentration of HR professi
42、onals exerted positive effects for six of the HR subsystem scalesintroduce HPWSs practices in firms emerges from the prevalence of professional HR managers, not organizational strategic considerations.HR professional norms are represented in an MNC affiliate is a principal driver of HPWS adoption.Unions are often suspect of management motives in implementing HPWSs, the normative forces at work here would stand in oppositionto HPWS implementation.2007/11/234博学之，审问之，慎寺之，明辩之，笃行之。精心整理，欢迎收藏
