Journal of International Business Studies

, Volume 38, Issue 3, pp 430–446

Institutional theory and MNC subsidiary HRM practices: evidence from a three-country study



This study sets out to explore human resource management (HRM) practices in multinational corporation (MNC) subsidiaries within an institutional theory framework. Based on a sample of 158 subsidiaries of MNCs operating in the United States, Russia and Finland, the paper examines factors hypothesised to influence the HRM practices adapted in US, Japanese and European MNC subsidiaries located in Russia, Finland and the US. The results indicate significant differences in HRM practices used across host countries. Both the status of the subsidiary human resource department and the degree to which the subsidiary was involved in knowledge transfer with other parts of the MNC had a significant impact on the selection of HRM practices.


human resource management multinational corporations institutional theory 


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Copyright information

© Academy of International Business 2007

Authors and Affiliations

  • Ingmar Björkman
    • 1
    • 2
  • Carl F Fey
    • 3
    • 4
  • Hyeon Jeong Park
    • 5
  1. 1.Department of Management and OrganisationSwedish School of EconomicsHelsinkiFinland
  2. 2.INSEAD Euro-Asia and Comparative Research CentreFontainebleauUSA
  3. 3.Stockholm School of EconomicsStockholmSweden
  4. 4.Stockholm School of EconomicsSt PetersburgRussia
  5. 5.Department of Managerial SciencesJ. Mack Robinson College of Business, Georgia State UniversityAtlantaUSA

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