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, USA.

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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.