Examining Host-Country Specific Socially Responsible Human Resource Management: The Interplay of Host Country Contexts, Institutional Distance and Country-of-Origin Effects

Abstract

Socially responsible human resource management (SRHRM) is crucial for multinational enterprises to implement corporate social responsibility (CSR) initiatives in host countries to gain legitimacy. However, SRHRM implementation is inevitably shaped by institutional factors. This study examines the interplay of host country contexts, institutional distance, and country of origin on different dimensions of host-country specific SRHRM practices, that is, employee-oriented, general CSR facilitation, and local sustainability contribution practices. A mixed method was applied to this study. Data regarding host-country specific SRHRM practices of 52 international construction companies from 2018 to 2022 were extracted from CSR reports by using content analysis. The data were then analyzed through logistic regression models. The findings reveal that host country contexts positively impact employee-oriented and CSR facilitation practices but negatively affect local sustainability contribution practices. Institutional distance is found to positively affect all three dimensions of SRHRM practices. Moreover, the country of origin plays a moderating role in the effects of host country contexts and institutional distance on host-country specific SRHRM practices. The findings offer companies valuable insights into developing SRHRM implementation policies that account for complex external and internal environments.