Human resource capabilities in uncertain environments

Increasingly, multinational companies (MNCs) are entering less explored markets with highly uncertain environments. In such an environment, MNCs must develop new solutions to tackle unpredictable changes. While there are some studies focusing on firm strategies in turbulent environments, there is a...

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Bibliographic Details
Published in:International journal of human resource management 2021-10, Vol.32 (17), p.3721-3747
Main Authors: Tasavori, Misagh, Eftekhar, Nayereh, Mohammadi Elyasi, Ghanbar, Zaefarian, Reza
Format: Article
Language:English
Subjects:
Autonomy
Compensation
Decision making
dynamic capability
Head offices
human resource capability
Human resource management
Human resource managers
Human resources
International human resource management
Islam
multinational companies
Resource managers
Teams
uncertain environment
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Summary:Increasingly, multinational companies (MNCs) are entering less explored markets with highly uncertain environments. In such an environment, MNCs must develop new solutions to tackle unpredictable changes. While there are some studies focusing on firm strategies in turbulent environments, there is a scant understanding of how the human resource strategies of MNCs should change in precarious environments. Thus, built upon the dynamic capability perspective, we focus on the human resource capabilities that MNCs develop in an uncertain emerging economy. In this research, we carried out a multiple case study and interviewed six MNCs' subsidiaries operating in the Islamic Republic of Iran. Our findings demonstrate that in an uncertain environment, human resource managers should be able to develop flexible cost management, adapt compensation packages, employ frequent and transparent communication, ensure retention of their top-quality managers, develop long-term oriented team-based and quick decision-making, and have the autonomy from MNC headquarters to enact these initiatives.
ISSN:0958-5192
1466-4399
DOI:10.1080/09585192.2020.1845776