The extent of divergence in human resource management practices of MNE subsidiaries and domestic firms

Mehmet Demirbag, David Collings, Ekrem Tatoglu, Kamel Mellahi

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    Abstract

    This study provides some important insights on the convergence/divergence debate in the context of one of south eastern Europe’s key economies, Turkey. based on a sample of local firms and MNE subsidiaries in Turkey, we witness a degree of divergence between MNE subsidiaries and local firms in the Turkish context. In this regard, local firms and MNE subsidiaries differed in a number of specific regards. These include greater usage of competence-based performance appraisal, performance-based compensation, employee empowerment and ultimately a greater emphasis on the strategic role of the HRM function in MNE subsidiaries vis-à-vis their local counterparts. There is also some evidence of convergence between MNE subsidiaries and local firms with regard to employee training, merit-based promotion and internal communication.
    Original languageEnglish
    Title of host publicationProceedings of the 51st Annual Meeting of the Academy of International Business
    Subtitle of host publicationKnowledge Development and Exchange in International Business Networks
    Place of PublicationEast Lansing
    Publication statusPublished - 2009
    EventAcademy of International Business Annual Meeting - San Diego, United States
    Duration: 27 Jun 200930 Jun 2009

    Conference

    ConferenceAcademy of International Business Annual Meeting
    CountryUnited States
    CitySan Diego
    Period27/06/0930/06/09

    Keywords

    • divergence
    • human resource management practices
    • MNE subsidiaries
    • domestic firms

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  • Cite this

    Demirbag, M., Collings, D., Tatoglu, E., & Mellahi, K. (2009). The extent of divergence in human resource management practices of MNE subsidiaries and domestic firms. In Proceedings of the 51st Annual Meeting of the Academy of International Business: Knowledge Development and Exchange in International Business Networks