The extent of divergence in human resource management practices of MNE subsidiaries and domestic firms

Demirbag, Mehmet and Collings, David and Tatoglu, Ekrem and Mellahi, Kamel (2009) The extent of divergence in human resource management practices of MNE subsidiaries and domestic firms. In: Proceedings of the 51st Annual Meeting of the Academy of International Business. Academy of International Business, East Lansing.

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    Abstract

    This study provides some important insights on the convergence/divergence debate in the context of one of south eastern Europe’s key economies, Turkey. based on a sample of local firms and MNE subsidiaries in Turkey, we witness a degree of divergence between MNE subsidiaries and local firms in the Turkish context. In this regard, local firms and MNE subsidiaries differed in a number of specific regards. These include greater usage of competence-based performance appraisal, performance-based compensation, employee empowerment and ultimately a greater emphasis on the strategic role of the HRM function in MNE subsidiaries vis-à-vis their local counterparts. There is also some evidence of convergence between MNE subsidiaries and local firms with regard to employee training, merit-based promotion and internal communication.