Navigating HRM practices in the Indian institutional context: Multinational vs. domestic enterprises in comparative perspective

Melhem, Muntaser J, Khassawneh, Osama, Darwish, Tamer K ORCID: 0000-0003-1815-9338, Singh, Satwinder and Alanezi, Abdullah N (2024) Navigating HRM practices in the Indian institutional context: Multinational vs. domestic enterprises in comparative perspective. Review of International Business and Strategy. (In Press)

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Purpose: The role of distinct institutional context in shaping employment practices is particularly evident in emerging markets where institutional measures are often evolving and not yet fully established. This presents several challenges, particularly for multinational corporations (MNCs) operating in such contexts. This research aims to provide a comparative analysis of HRM practices, specifically recruitment and selection, internal career opportunities, and performance appraisals between domestic and multinational companies in a large emerging economy, that is India. Design/Methodology/Approach: In this study, survey-based data was gathered from a diverse sample of 252 companies, comprising both domestic enterprises (DEs) and MNCs, to collect comprehensive data on HRM practices. The aim is to provide a nuanced understanding of the variations in HRM approaches between DEs and MNCs, taking into account the unique institutional context of the Indian market. Findings: Contrary to initial expectations, the study's findings do not support the hypothesis that MNCs would prioritize more rigorous and effective HRM practices compared to DEs in the Indian context. Instead, the results reveal that DEs place a greater emphasis on effective HRM practices than their MNC counterparts, despite the latter's international reach and operational success. These findings shed light on the distinctive HRM strategies employed by MNCs and DEs when navigating the complexities of the Indian market. Originality: This study contributes to the existing IB literature by providing a comparative perspective that emphasizes DEs proclivity for institutional entrepreneurship and change. Exploring the resource dynamics for both MNCs and DEs, the study showcases them as divergent adaptive navigators within (in)formal institutional logics, adept at navigating and influencing institutional structures and shaping distinct HRM practices. The findings challenge traditional assumptions about HRM priorities of MNCs and DEs. Keywords: Recruitment; performance appraisals; institutions; MNCs; DEs; India

Item Type: Article
Article Type: Article
Uncontrolled Keywords: Recruitment; Performance appraisals; Institutions; MNCs; DEs; India
Related URLs:
Subjects: H Social Sciences > HF Commerce
H Social Sciences > HF Commerce > HF5001 Business
H Social Sciences > HF Commerce > HF5001 Business > HF5549 Personnel management. Employment management
H Social Sciences > HM Sociology
Divisions: Schools and Research Institutes > School of Business, Computing and Social Sciences
Research Priority Areas: Applied Business & Technology
Depositing User: Tamer Darwish
Date Deposited: 30 Apr 2024 12:51
Last Modified: 07 May 2024 13:43

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