Human resource management practices at foreign-affiliated companies in least-developed regions: US and Japanese Companies in Nepal
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On the basis of 16 qualitative case studies of the US-affiliated, Japanese-affiliated and local Nepali companies, we investigate how the context of Nepal as a least-developed country influences the way MNC affiliates implement human resource (HR) practices. Our findings indicate that institutional distance can promote, rather than impede, the transfer of HR practices, as long as the practices are able to address local needs. The findings also suggest that the nature and needs of the local labor market are stronger predictors of the transfer of HR practices than those factors identified in extant international human resource management frameworks, such as institutional and cultural distance.
Keywordsinternational human resource management MNCs’ foreign affiliates US and Japanese companies least-developed regions Nepal
The authors wish to thank the General Editor Michael A. Witt and two anonymous reviewers for their constructive comments. The authors would also extend their appreciation to Associate Editor, John Billingsley. This work was supported by Grant-in-Aid for Scientific Research (Grant Number: 26285085) from the Japan Society for the Promotion of Science.
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