Organization Development and Firm Performance: A Comparison of Multinational and Local Firms

This study examines the usage and outcomes of organization development (OD) interventions in multinational firms. We test competing hypotheses derived from the cultural and institutional/isomorphic perspectives. Data from firms operating in Hong Kong show that Western firms (U.S. and European) are m...

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Bibliographic Details
Published in:Journal of international business studies 2001-01, Vol.32 (1), p.95-114
Main Authors: Lau, Chung-Ming, Ngo, Hang-Yue
Format: Article
Language:English
Subjects:
Adaptation
Asia
Business and Management
Business management
Business Strategy/Leadership
Business structures
Comparative studies
Corporate culture
Corporate strategies
Cultural values
Culture
Host countries
Human resource management
Human resources
Hypotheses
International Business
Intervention
Japanese culture
Management
Multinational corporations
Multinational enterprises
Organization
Organization development
Organization theory
Parents
Polls & surveys
Southeast Asian culture
Subsidiary companies
Systems design
Transactional analysis
Variance analysis
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Description
Summary:This study examines the usage and outcomes of organization development (OD) interventions in multinational firms. We test competing hypotheses derived from the cultural and institutional/isomorphic perspectives. Data from firms operating in Hong Kong show that Western firms (U.S. and European) are more receptive to OD interventions than Asian firms (local and Japanese), which supports the cultural explanation. However, the local isomorphism explanation is valid in predicting organizational outcomes that OD interventions have similar effects regardless of a firm's country origins. Hence, neither perspective alone is sufficient to explain both usage and outcomes. This implies that local adaptation of OD interventions is a complex issue for managing multinational firms.
ISSN:0047-2506
1478-6990
DOI:10.1057/palgrave.jibs.8490940