ABSTRACT
Only a handful of studies have examined specifically the degree of MNC standardization versus local adaptation of HRM in the context of the Asia-Pacific. In these studies, subsidiary managers have been asked to estimate the extent to which the subsidiary’s HRM practices resemble those of local firms and the MNC parent organization, respectively. Hannon et al. (1995) studied 100 subsidiaries of Japanese, US and European MNCs operating in Taiwan. In line with research on foreign-owned subsidiaries in the USA (Rosenzweig and Nohria, 1994), the researchers found that the HRM practices of MNCs in Taiwan overall were more localized than globally standardized. Other researchers have collected data on the HRM practices of both local and foreign-owned firms. This group of studies includes, among others, a study of indigenous and foreign-owned firms in Korea and Taiwan (Bae et al., 1998). Pronounced differences were found between host countries and foreign firms, indicating that at least some degree of transfer of HRM practices had taken place. In sum, although MNCs tend, at least to some extent, to transfer standardized HRM practices to affiliates located in advanced western countries like the USA and newly industrialized Asian countries like Taiwan and Korea, there is some indication that the degree of localization of HRM is greater than that of MNC standardization.
