Cross-cultural interfaces: hybridization of HRM practices of MNCs in developing countries and emerging economies

The present study examines hybrid human resources management (HRM) practices of multinational companies (MNCs) operating in developing countries (DCEEs) and the outcomes of this hybridization in terms of local employees' perceptions of appropriate and effective HRM practices. With the increased investment of Western industrialized world to DCEEs, managing HR in MNCs becomes an issue of critical importance (Jackson, 2004a). However, to balance the incompatible demands of being locally responsive while preserving global integration is a challenging task for HRM managers in MNCs (Horwitz, (Camoche, & Chew, 2002) and this challenging task eventually leads to adoption of hybrid models. Not only the description of the process of the hybridization of HRM practices but also its outcomes are missing in the literature. According to Jackson (2004b), the effects of HRM hybridization must be examined with a specific focus on their effectiveness and appropriateness both at the organizational and individual levels. The objectives of this study are to a) contribute to the literature by examining perceived outcomes of so-called 'Western' cultural influences in the context of HRM in DCEEs, and b) contribute to practice by providing feedback to HRM practitioners, especially in MNCs, about how to implement HRM in particular cultural and institutional contexts to increase their appropriateness and effectiveness. In a concurrent mixed-method design with a pragmatic approach, both quantitative and qualitative data were triangulated. Quantitative data collected from snowball samples of employees working in MNCs in Turkey and Romania through a large scale survey revealed a significant relationship between socio-cultural values and preferred HRM practices. Values rather than institutional contextual variables revealed to be stronger predictors of understanding HRM in context. Results further revealed that as the discrepancy between preferred and actual HRM decreases, it was perceived more appropriate and effective, which, in turn, lead to higher organizational commitment (OC) and lower turnover intention through mediation of higher person-organization (PO) fit. Furthermore, not only did the structural equation modeling findings establish the validity of the constructs of HRM hybridity, appropriateness and effectiveness (i.e., measurement model), they also supported the link between hybridity and positive employee attitudes, mediated by HRM appropriateness and effectiveness (i.e., structural model). Qualitative data collected through semi-structured interviews from employees in two case MNCs in Turkey and Romania also revealed the influence of various factors including cultural values and higher institutions on the implementation of HRM as well as its hybridization process. Findings complementing quantitative data as well as theoretical and practical contributions of the present research, its limitations, and future research avenues were also presented