Bringing it all back home: the HRM role in workforce localisation in MNEs in Saudi Arabia

Darwish, Tamer K ORCID: 0000-0003-1815-9338, Al Waqfi, Mohamed, Abdullah, Alanezi N, Haak-Saheem, Washika and Brewster, Chris (2023) Bringing it all back home: the HRM role in workforce localisation in MNEs in Saudi Arabia. International Journal of Human Resource Management, 34 (19). pp. 3721-3745. doi:10.1080/09585192.2022.2148551

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Governments across the Arabian Gulf aim to reduce their dependence on expatriates by implementing localisation policies. Building on institutional and legitimacy theories, we seek to advance our understanding of the effects of such policies on multinational enterprises (MNEs). We used data from 157 MNEs operating in Saudi Arabia and found the indigenisation of the human resource management (HRM) function is closely correlated with the level of work-force localisation: key factors empowering localisation, defined as recruitment and training practices geared towards the needs of locals, include the demographics and role of the HRM Director. Theoretically, we contribute to the litera-ture on institutionalism and legitimacy by revealing how various institutional forces influence the process of selection and transfer of HRM practices to adapt to the institutional environment of a given context. Our research also shows that if MNEs follow government recommendations, develop links with local educational institutions to target suitable job candidates, and adapt to shortages in local skills and competencies by investing in the training and development of local workers, they will be more likely to achieve success in workforce localisation and legitimacy.

Item Type: Article
Article Type: Article
Subjects: H Social Sciences > HF Commerce > HF5001 Business
H Social Sciences > HF Commerce > HF5001 Business > HF5549 Personnel management. Employment management
Divisions: Schools and Research Institutes > School of Business, Computing and Social Sciences
Research Priority Areas: Applied Business & Technology
Depositing User: Tamer Darwish
Date Deposited: 20 Dec 2022 13:41
Last Modified: 09 May 2024 04:15

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