ABSTRACT
Some of the explanatory research on HRM practices in MNC affiliates in Asia has conceptualized HRM in terms of degree of standardization (and/or localization), while other studies have applied more direct measures of the HRM practices found in MNC subsidiaries and domestically owned firms. Among those choosing the former approach, Hannon et al. (1995) found that the more dependent a subsidiary was on the parent organization, the more globally standardized the HRM practices were. The degree of MNC ownership moderated the relationship between the subsidiary’s dependence on host institutions and HRM standardization – the higher equity percentage held by the MNC, the more the HRM practices resembled those of the foreign corporation.
