Factors Affecting the Adoption of High Performance Work Systems in Foreign Subsidiaries: an Empirical Investigation in Hong Kong

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Factors Affecting the Adoption of High Performance Work Systems in Foreign Subsidiaries: An empirical investigation in Hong Kong FACTORS AFFECTING THE ADOPTION OF HIGH PERFORMANCE WORK SYSTEMS IN FOREIGN SUBSIDIARIES: AN EMPIRICAL INVESTIGATION IN HONG KONG Ngo, Hang-Yue The Chinese University of Hong Kong Sharon Foley Tsinghua University, China ABSTRACT High performance work systems (HPWS) have been increasingly used in multinational corporations (MNCs). Drawing upon institutional theory and alignment theory, we examine the determinants of the adoption of HPWS in foreign subsidiaries of MNCs. Our data were collected via a survey of HR directors/managers of MNCs operating in Hong Kong. The results of regression analysis show that…show more content…
It is a competitive and dynamic place, viewed as the strategic gateway to the vast Chinese market (Enright, Scott & Dodwell, 1997). Some MNCs from Western countries use Hong Kong as their Asian base to coordinate their business in the region (Meyer, 2008). Thus, it represents an ideal research site to examine the major considerations of MNCs regarding the implementation of HRM system in their overseas subsidiaries. Our paper is structured as follows. The next section provides a review of relevant literature on HRM in general and HPWS in particular within the MNCs context. The paper then advances some hypotheses about the determinants of the adoption of HPWS in foreign subsidiaries of MNCs. The method section describes the sample and the study variables, followed by the section on statistical analyses and results. In the last section, the implications of our findings are discussed and directions for future research are suggested. LITERATURE REVIEW HRM in MNCs MNCs are playing an indispensable role in the globalisation process, particularly in the dissemination of management practices and diffusion of international standards (Bartlett & Ghoshal, 1998; Edwards & Ferner, 2005; Rubery & Grimshaw, 2003). The management of their overseas subsidiaries is challenging for MNCs, given the complex and changing environment they face (Bartlett & Ghoshal, 1989; Geppert & Matten, 2006). A central issue in managing foreign subsidiaries for MNCs is the

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