Global Transfer of HR Processes

Abstract

The transmission process of organizational practices from headquarters to subsidiaries underlies dual institutional pressures from the host country institutional environment and headquarters’ demands. This paper takes the analysis from a macro-institutional level to the level of the individuals involved in the transfer process. The influence of the subsidiary HR manager’s nationality and the resulting degree of overlap between HRM systems in headquarters and subsidiaries is modeled with three variables: reputational effectiveness, allegiance, and ability to speak the headquarters’ language. Based on the theoretical considerations, the subsidiary HR manager’s nationality appears to have an influence on the degree of overlap of the HRM systems in headquarters and subsidiaries.