The adoption of high performance work systems in foreign subsidiaries

This study examines the determinants and outcomes of the adoption of high performance work systems (HPWS) in foreign subsidiaries of multinational corporations (MNCs). Region-of-origin of MNCs, headquarters (HQ) influence, and strategic human resource management (SHRM) orientation are expected to de...

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Bibliographic Details
Published in:Journal of world business : JWB 2012, Vol.47 (1), p.106-113
Main Authors: Foley, Sharon, Ngo, Hang-yue, Loi, Raymond
Format: Article
Language:English
Subjects:
Business strategies
Foreign subsidiaries
High performance systems
High performance work systems
Human resources
Multinational corporations
Multinational enterprises
Organization theory
Organizational behaviour
Organizational climate
Personnel management
Strategic human resource management
Studies
Subsidiary
Subsidiary performance
Technology adoption
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Summary:This study examines the determinants and outcomes of the adoption of high performance work systems (HPWS) in foreign subsidiaries of multinational corporations (MNCs). Region-of-origin of MNCs, headquarters (HQ) influence, and strategic human resource management (SHRM) orientation are expected to determine subsidiaries’ use of HPWS, which affects firm performance via organizational climate. We found that HQ influence, SHRM orientation, and HPWS adoption varied among foreign subsidiaries originating in different regions. HQ influence and SHRM orientation were positively related to the adoption of HPWS. HPWS had a positive effect on subsidiaries’ performance, and this positive effect was partially mediated by organizational climate.
ISSN:1090-9516
1878-5573
DOI:10.1016/j.jwb.2010.10.025