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Subsidiary Interdependencies and International Human Resource Management Practices in German MNCs

A Resource-based View

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Abstract

  • Using the resource-based view, this paper links the degree of interdependence that exists between subsidiaries of multinational corporations (MNCs) to the use of various International Human Resource Management (IHRM) practices.

  • We assume that in many MNCs this interdependence has increased the need for cross-border coordination.

  • We analyze to what extent MNCs use IHRM practices in order to enhance their coordination capability across national borders.

  • We present a framework that addresses these effects and empirically test it using data from a questionnaire survey among 142 majority-owned overseas subsidiaries of German MNCs.

  • The findings show that the degree of interdependence is related to the level of international experience of staff employed in subsidiaries, the use of third-country nationals, the provision of training, the use of cross-cultural management teams, and the choice of employee evaluation and reward methods.

  • We conclude by discussing the implications of our findings for IHRM practitioners and scholars as well as the limitations of our study.

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  1. Department of International Management, School of Business and Economics, University of Erlangen-Nuremberg, Nuremberg, Germany

    Dirk Holtbrügge

  2. International Business and Strategy Group, Kent Business School, Kent, UK

    Alex T. Mohr

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Correspondence to Dirk Holtbrügge.

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Holtbrügge, D., Mohr, A.T. Subsidiary Interdependencies and International Human Resource Management Practices in German MNCs. Manag Int Rev 51, 93–115 (2011). https://doi.org/10.1007/s11575-010-0063-y

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