Integration-responsiveness framework: Indian IT subsidiaries in Mexico

• Published in: Journal of Indian business research 2016-01, Vol.8 (4), p.278-294
• Main Author: Rao, Pramila
• Format: Article
• Language: English
• Subjects: Case studies; Compensation; Corporate culture; Economies of scale; Emerging markets; Ethnocentrism; Foreign investment; Head offices; Hiring; Host countries; Host country; Human resource management; Human resources management; India; Information technology; Interviews; Leadership; Localization; Markets; Mexico; Multinational corporations; Performance appraisal; Performance management; Professional development; Recruitment; Reliability; Researchers; Responsiveness; Standardization; Strategic planning; Studies; Subsidiaries; Subsidiary; United States
• ISSN: 1755-4195; 1755-4209
• DOI: 10.1108/JIBR-10-2015-0111

Purpose This qualitative case study research describes the human resource management (HRM) practices of four leading Indian information technology (IT) subsidiaries located in Mexico. The purpose of this study is to understand the implementation of these practices from the global integration-local responsiveness perspective. Design/methodology/approach This study adopts a qualitative multiple case-design approach to compare HRM themes across multiple cases. This research was conducted with HRM leaders from December 2011 through August 2012. This research involved interviews with 50 per cent of the population of Indian IT companies in Mexico. The interviews were tape-recorded and transcribed to maintain the rigor of the research. This study also followed other guidelines to maintain validity and reliability in research. Findings The results indicate that each function has to be considered independently because of contextual factors. Recruitment and compensation are usually localized as cultural norms, and local laws dictate following domestic practices. Performance management and professional development follow the guidelines from the headquarters as these companies seek standardization of work-related behaviors among their global employees. Practical implications This study provides preliminary guidelines for global IT practitioners who may be interested in doing business in Mexico. This paper also details challenges and guidelines for IT multinationals planning to establish in Mexico as articulated by the respondents. Originality/value This can be considered a pioneer research, as no other research papers (either qualitative or empirical) have explored the HRM practices of Indian multinational subsidiaries in Mexico. This paper thus provides a preliminary step in understanding this cross-cultural literature in emerging markets.